The Norwegian GSP-system

The Norwegian GSP-system This is an updated summary of the Norwegian GSP-system applicable from February 2009. It replaces previous publications concerning the GSP-system. 1. Background information... 2 1.1 General... 2 1.2 Changes implemented from 1 January 2008... 2 1.3 New LDC countries... 3 1.4 New ordinary GSP-countries... 3 1.5 Changes in the value limits... 3 2. Conditions for GSP preferential tariff treatment... 4 3. Developing countries for which the Norwegian GSP-system is valid (implemented)... 4 4. Rules of origin... 5 4.1. Origin criteria... 5 4.2. Insufficient working or processing... 6 4.3. Cumulation... 7 5. The direct transport rule... 9 6. Proof of origin - documentation... 10 6.1. Proof of origin... 10 6.1.1. Certificate of origin Form A... 10 6.1.2. Invoice declaration... 11 6.1.3. Period of validity... 11 6.1.4. Replacement certificate Form A... 11 6.1.5. Movement certificate EUR. 1... 12 6.2. Authorisation of Norwegian approved exporters... 12 6.3. Low value, non-commercial importations... 12 7. Request for preferential tariff treatment... 13 8. Products covered by the Norwegian GSP-system (scope of products)... 13 8.1. General remarks... 13 8.2. Agricultural products... 13 8.3. Industrial products... 14 9. Other provisions... 14 9.1. Verifications... 14 Annex 1- List of GSP-countries... 16 List of Least developed GSP-countries (LDCs)... 16 List of low income countries which are not LDC-countries... 17 List of developing countries given ordinary GSP treatment... 18 Annex 2 summary of authorized authorities... 20 Annex 3 Norwegian Customs Act and Customs Regulation... 21 The Act on Customs Duties and Movement of Goods... 21 (Customs Act)... 21 21. December 2007 No. 119... 21 List of working or processing rules... 24 List of processing rules... 29 Certificate of origin, form A... 56 Invoice declaration... 57 Invoice declaration... 58 Invoice declaration... 59 Movement certificate Eur.1... 60 Annex 4 Scope of products (coverage)... 61 List 1 - Products qualifying for 100 per cent reduction... 62 List 2 - Products qualifying for 100 per cent reduction... 81 List 3 - Products qualifying for 15 per cent reduction... 83 List 4 - Products qualifying for 10 per cent reduction... 92 List 4 b - Products qualifying for 30 per cent reduction... 106 List 5 - Products qualifying for 50 per cent reduction... 108 List 7 - List of exceptions... 110 Appendix I special conditions for products originating in Botswana, Namibia and Swaziland... 112 List of products qualifying for 30 percent reduction... 113 1

1. Background information 1.1 General In accordance with parliamentary approval and a Royal Decree of 3 September 1971, the Norwegian Ministry of Finance implemented the Generalized System of Preferences for import of goods from developing countries, with effect from 1 October 1971. The GSPsystem, being a recognised exception from the GATT/WTO principles on most-favoured nation treatment, enables industrialised countries on an autonomous basis to grant preferential tariff treatment to products from developing countries. The European Community, Australia, New Zealand, USA, Canada, Japan, Switzerland together with certain countries in Eastern Europe have implemented equivalent schemes as Norway. It s the privilege of the individual industrial country ( donor country ) to choose which developing country ( receiving country ) to be covered by the scheme, which products to be included by the scheme, together with the applicable customs rate. Additionally, a set of rules of origin determines certain production processes which are required for a product from a GSP-country to benefit from GSP duty preference (originating products). The basis for GSP preferential tariff rates (customs duty rates) is laid down in 8-3-1 of the Norwegian Customs Law. For industrial products GSP preferential treatment means by and large duty-free access with the exception of some textile-products on a list of sensitive products (exception-list). For agricultural products the actual GSP tariff treatment is to be found in the various lists covering such products, cf. part III of this publication. Since 1971 the Norwegian GSP-system has been amended and extended a number of times. Due to the GATT/WTO negotiations on agricultural products, a revised system was implemented in 1995. After a comprehensive revision in 1999 a number of previous exclusions were deleted from the exception-list. This resulted in a simplification of the system and a considerable enlargement of the goods coverage offered to GSP-countries from 1 January 2000. From 1 July 2002, a more consistent method was adopted to implement the former scheme of duty and quota-free marked access for all products originating in all LDC-countries. On the basis of the proposition to the government budget for the year 2005, changes were made in the GSP-scheme (list of exceptions) by removing men s apparel from the list, and granting men s wear the same treatment as women s apparel. Thus the GSP preferential treatment was improved. Theses changes were implemented from 1 January 2005. 1.2 Changes implemented from 1 January 2008 On the basis of a report from an interdepartmental working party, written submissions and government management, the Norwegian Parliament adopted changes in the scope of countries and the offer to certain countries, changes in the origin regulation, to phase out the Customs and Excise surveillance scheme and the establishment of a new regulation managed by the Norwegian Agricultural Authority. It was further decided that the OECD DAC-list in force (this is an approved list of countries recognised as being receivers of public development aid) shall form the basis for which countries that shall be included in the Norwegian GSP-system. The rules of origin of the GSP-system have been revised and simplified several times. From 1 July 1978, the possibility of cumulation within certain regional economic groups of 2

countries was provided for. From 1 January 1988, the system was adapted to the Harmonized Description and Coding System (HS) and has since been amended according to successive HS-revisions. Upon implementation of a revised regulation on rules of origin from 1 March 1998, the rules of origin were harmonised with the rules applied by the European Community and Switzerland. With this amendment a general tolerance rule and the possibility of using a socalled invoice declaration was introduced. From this date, bilateral cumulation of origin in a GSP-country with products originating in Norway was introduced. The regulation also provides for a system of diagonal cumulation of origin with originating products from the European Community and Switzerland on a reciprocal basis. This special arrangement was implemented 1 April 2001. 1.3 New LDC countries The GSP scheme for duty and quota free market access to the Norwegian marked is extended to apply for all low income countries according to the DAC-list in force. One condition is that the countries included have a population of less than 75 million. This implies that this duty-free-scheme also includes the former ordinary GSP-countries: Ivory Coast, Ghana, Kenya, Cameroon, Republic of Congo, Zimbabwe and Nicaragua. The following low income countries outside Africa are included in the GSP-system and in the duty free scheme : Moldova, Kyrgyzstan, Tajikistan, Uzbekistan, Mongolia, North Korea and Papua New Guinea. However, the GSP-system is not effective all for these countries. This will only take place after notification from the individual country, i.e. after exchange of stamps and the name of responsible authorities etc. The Directorate of Customs and Excise will announce implementation as soon as all formalities are fixed. The GSP-system is effective for the following previous ordinary GSP-countries: Ivory Coast, Ghana, Kenya, Cameroon, Zimbabwe, Nicaragua and Mongolia. They have from 1 January 2008 had the benefit of duty and quota free market access to Norway. 1.4 New ordinary GSP-countries Some new countries are included in the Norwegian GSP-system. They are: Armenia, Azerbaijan, Georgia, Belarus, Kazakhstan, Turkmenistan and Ukraine. These countries shall be included in the duty preferential scheme for ordinary GSP-countries. The GSP-system is not yet effective for these countries. This will only happen after notification from the individual country, i.e. exchanging of stamps and name of the responsible authorities etc. The directorate of Customs and Excise will announce when the GSP-system is implemented for the various countries. 1.5 Changes in the value limits With reference to the regulation of 20 February 1998, changes were made from 1 January 2008, regarding the origin of goods, when using the scheme of tariff preferences for developing countries. The changes were: an invoice declaration may be issued by the exporter in a GSP-country according to the rules, provided that the value of the originating products in the shipment does not exceed NOK 100 000, see Customs Regulation 8-5-11 No. 1. 3

the total value of the goods concerned must not exceed NOK 4100 for minor consignments from private persons to private persons or NOK 10 000 for goods that constitute a part of the travellers personal luggage, see Customs Regulation 8-5-11 No 2. 2. Conditions for GSP preferential tariff treatment In order to obtain preferential tariff treatment on importation of a GSP-product into Norway, the following conditions apply: (a) The product must be manufactured in a beneficiary developing country for which the Norwegian GSP-system has been implemented, see item 3. (b) The product must be manufactured in the beneficiary developing country concerned in accordance with the applicable rules of origin of the Norwegian GSP-scheme, see item 4. (c) The product must be transported to Norway directly from the exporting country concerned, see item 5. (d) The product must at the time of importation into Norway (customs clearance) be covered by a satisfactory proof of origin, see item 6. (e) The importer (declarant) must request (claim) GSP preferential at the time of customs clearance of the product, see item 7. (f) The product must be covered by the scope of products contained in the Norwegian GSPscheme offered to the developing country concerned. 3. Developing countries for which the Norwegian GSP-system is valid (implemented) Developing countries (GSP-countries) are, in respect of Norway, those countries (areas) which at any time are recognized as being developing countries by Norwegian authorities. The Norwegian Ministry of Foreign Affairs has decided that the OECD DAC-list in force (which is a list of countries being approved receivers of public development aid) shall be the basis for which countries to be included in the Norwegian GSP-system. Annex 1 - List of GSP-countries The developing countries are divided in a list representing least developed GSP-countries (LDCs), a list representing low income countries and another list representing the ordinary GSP-countries. The so-called LDCs are the poorest countries in the world, and are given a more favourable preferential treatment than the ordinary developing countries. The particular arrangement of the GSP-system concerning tariff and quota-free market access to the Norwegian market is extended to apply for all low income countries according to the DAC-list in force. A condition is that the countries included have a population of less than 75 4

million. This means that India, Pakistan, Vietnam and Nigeria do not benefit from the same market access as the LDCs. Entry into force To obtain preferential tariff treatment for goods originating in a developing country, it is a precondition that the Norwegian GSP-scheme has been implemented for the country concerned. Before such implementation can formally take place, it is required that the country has fulfilled the necessary formalities regarding notification of competent authorities and impressions of stamps etc. The date of implementation (entry into force) is officially published by the Directorate of Customs and Excise according to domestic procedures. Upon importation into Norway, the customs authorities of a relevant GSP-country will always be recognized as competent authority for the issue of certificates of origin Form A, even if this is not explicitly mentioned in the list in appendix 2. GSP preferential tariff treatment may only be obtained for products covered by a certificate of origin Form A, which is endorsed and stamped by a competent authority properly notified in advance by the GSP-country concerned, or an origin declaration. Original prints of stamps and signatures used by the relevant authorities are deposited with the Directorate of Customs and Excise. When in doubt, the GSP certificate of origin can be sent to the directorate (Tariff and Origin Section) for control. 4. Rules of origin The rules of origin, including rules on direct transport and importation into Norway via the European Community or Switzerland, as well as provisions regarding proofs of origin, are laid down in chapter 8 of the Customs Act and chapter 8 of the Customs Regulation. In order to be granted preferential tariff treatment upon importation to Norway it is required that the originating status of the product can be proven upon presentation of a satisfactory proof of origin. The producer/exporter in the GSP-country concerned may only issue a proof of origin for a product which fulfils the rules of origin laid down in the Norwegian Customs Regulation and by this achieving status as an originating product. GSP-preferential tariff treatment may only be requested and granted for originating products from a GSP-country. The following is a general listing of some of the most important elements laid down in the regulations on rules of origin: 4.1. Origin criteria A product has its origin (originating status) in a GSP-country if the product is wholly obtained in that country or sufficiently worked or processed in the country concerned. Wholly obtained products The products which are considered to be wholly obtained in a GSP-country are defined in 5

8-4-32 and 8-4-4 of the Customs Regulation. These products are mainly primary products from agriculture, hunting and fishing, mineral products extracted from the soil or seabed of the country concerned, products from sea fishing, etc. Sufficiently worked or processed products The products considered to be sufficiently worked or processed in a GSP-country are defined in 8-4-33 of the Customs Regulation. According to this provision, a product is as a main rule considered to be sufficiently worked or processed when all the imported materials (non-originating materials) used in the production in the GSP-country concerned are classified in a HS tariff heading (4 digits) different from the tariff heading under which the product obtained (the product to be exported) is classified. However, if the product obtained is referred to in columns 1 and 2 of the List of working and processing operations (product-specific rules), the specific rules laid down for the individual product in the list shall apply instead of the general rule of change in tariff classification. A product mentioned in the list of product-specific rules is considered as being sufficiently worked or processed when all the conditions laid down for the product concerned in column 3 of this list are fulfilled. All the conditions laid down for the individual product in this list of processing operations (also referred to as list-rules ) must therefore be fulfilled instead of the general change of heading rule. The list may for example, contain a requirement that all non-originating materials used are classified under a different HS-heading as the product obtained (change in tariff classification), and at the same time set a value limit for the non-originating materials concerned (for example 40% ad valorem), or specific production criteria (for example manufacture from yarn ). The list of processing operations also has a set of Introductory Notes. Tolerance rule From the main requirements regarding change in tariff classification or possible terms laid down for a product mentioned in the list of processing operations, exceptions are made for small quantities non-originating materials for which the value does not exceed 10% of the exworks price of the product. This tolerance rule does not apply for textile products of HSchapters 50-63. This tolerance rule is not applicable in such manner that a maximum limitation of the value of non-originating materials allowed, laid down for a product in the list of product-specific rules, is exceeded. 4.2. Insufficient working or processing In 8-4-34 of the Customs Regulation, a number of simple operations considered to be insufficient working or processing are laid down. These are often referred to as minimal operations. A product which has been subjected to only one or more of these insufficient processes will not nor single nor taken together - obtain originating status even if it fulfills the change of tariff classification rule or any percentage rule laid down for the product in the List of product-specific rules. However, if the product through the fulfilment of sufficient working or processing operations achieves originating status, it doesn t matter if the product in addition is subjected to one or more of such minimal operations. 6

4.3. Cumulation The provisions regarding cumulation of origin allows the use in a production process in a GSP-country of materials with originating status imported from another approved country contrary to the main requirements regarding change in tariff classification or possible list rules laid down for the product concerned. Where such imported materials have obtained originating status in an other approved country they may be used in the production process by the GSP-country concerned, without having to fulfil the requirements in changing tariff classification, or any requirements laid down for the finished product in the List of productspecific rules. In the Norwegian GSP-system, the three following types of cumulation are provided for: 4.3.1. Regional cumulation Already from 1 July 1978, Norway included in the GSP-scheme the possibility of cumulation of origin between developing countries forming regional economic groups. The arrangement for regional cumulation of origin, which is set out in 8-4-35 of the Customs Regulation, makes is possible for a GSP-country to cumulate with originating materials from another country within the same regional economic group. It s a precondition for the use of regional cumulation that the trade in such materials between the countries concerned is governed by rules of origin identical to those laid down in the Norwegian GSP-system. Furthermore, it s a requirement that GSP-countries wishing to benefit from such regional cumulation have been authorised by Norwegian authorities in advance. With reference to 8-4-35 of the Customs Regulation, regional cumulation is implemented for the following group: the Asean-group (as of 1 October 1982) Member countries: (status as of March 2000) Brunei Phillipines Indonesia The Democratic Peoples Republic of Laos Malaysia Singapore Thailand The Socialist Republic of Vietnam 4.3.2. Bilateral cumulation 8-4-31 No. 2 of the Customs Regulation allows the bilateral cumulation of origin in a GSPcountry with materials originating in Norway. This arrangement is also referred to as donor country content. This type of cumulation makes it possible to use, without restrictions, Norwegian originating materials in the production process in a GSP-country, in the same manner as other materials from the GSP-country itself, when the finished product is exported to Norway. Thus, originating materials from Norway are transformed into originating products of the GSPcountry of exportation. This means, in practical terms, that materials used in the production in a GSP-country and having originating status from the GSP-country concerned or from Norway, can be used without restrictions as regards to production criteria that may apply for the finished product, cf. the Customs Regulation 8-4-33 or any specific requirements laid down for the product in the List of product-specific rules. 7

When exporting Norwegian materials to a GSP-country for cumulation purposes (bilateral or diagonal cumulation) the originating status must be documented by the presentation of a Movement Certificate EUR 1 or an invoice declaration issued by the Norwegian exporter in question, cf. the following mentioned under item 6 (Documentation of originating status Proofs of origin). 4.3.3. Diagonal cumulation (with the European Community and Switzerland) The Customs Regulation 8-4-31No.2 also includes a rule that allows diagonal cumulation in a formalised cooperation between Norway and the European Union and Switzerland. This regulation entered into force 1 April 2001 following a decision by the Ministry of Finance. In December 2000 Norway, the European Community and Switzerland made the necessary agreements to align the conditions between the parties. All commodities classified under the customs tariff (HS nomenclature) chapters 1 24 are excluded from this cumulation arrangement. Thus, its not possible to cumulate with materials from chapter 1 24 originating in Norway, the European Community or Switzerland. The arrangement implies that through production and cumulation in a GSP-country, products (input materials) originating in Norway, the European Community or Switzerland according to the GSP-rules, can be incorporated in goods produced in that country, as well as other materials from this country, when the final product is exported to either Norway, the European Community or Switzerland. This means, that materials used in the production in a GSP-country and having originating status from the GSP-country concerned or Norway, the European Community or Switzerland, may be used without restrictions with regard to the production criteria applicable for the finished product, cf. the Customs Regulation 8-4-33 or any specific requirements laid down for the product in the List of product-specific rules. The final product can be exported as a GSP- originating product to either Norway, the European Community or Switzerland. 4.4.4. Qualifying units When considering the originating status of a product, each product unit must be assessed individually. The qualifying unit of a product is determined according to the existing classification rules of the HS-nomenclature. For a shipment of goods, the rules of origin requirements must be fulfilled for each individual product. It is not allowed to consider the whole shipment as a single unit, except in cases where the HS nomenclature classifies a group, set or assembly of products as one unit under a single tariff heading. Packing materials, which are included with the product for classification purposes, shall be included (as in the case with other materials and parts) when determining the originating status of a product, cf. the Customs Regulation 8-4-36. Accessories, spare parts and tools, constituting standard equipment dispatched with the product and included in the price, shall form an integral part of the product concerned (main product,) cf. the Customs Regulation 8-4-37. Sets, as defined in the General Interpretative Rules of the HS-nomenclature, are considered to be originating in a GSP-country if all the components of the set are originating products; alternatively, a set is also considered as originating in a GSP-country if the value of all nonoriginating materials (components) used does not exceed 15% of the ex-works price of the set, cf. the Customs Regulation 8-4-37. 8

Neutral elements, such as energy, fuel, machinery and tools, used during the production, or materials/ingredients which are not entering or incorporated in the final product and which are not intended to be incorporated/included in that product, shall not be taken into consideration when assessing the originating status of a product, cf. the Customs Regulation 8-4-37. 5. The direct transport rule In order to obtain GSP preferential treatment, the product must be transported directly from the beneficiary GSP-country to Norway. The products concerned must be destined for Norway (a Norwegian consignee) upon dispatch from the GSP-country in question. However, transportation of goods constituting one single consignment through one or more other countries, with or without unloading/reloading or temporary storage, is allowed, on condition that the goods have remained under customs surveillance during transit or storage and that they have undergone no other operations than those designed to keep them from deterioration. Upon customs clearance in Norway, the original certificate of origin Form A (or an invoice declaration for low-value consignments) issued and endorsed in the GSP-country concerned, must be presented. Importation via the European Community or Switzerland The provisions regarding direct transport of goods, with or without unloading/reloading or temporary warehousing, are generally also applicable for transports through the European Community and Switzerland. However, when shipping GSP-products through the European Community or Switzerland, re-exportation of GSP-products, either as a whole or split consignment, is also allowed. Thus that a shipment of GSP-products originally destined for a consignee in the European Community or Switzerland may at a later stage be re-exported to a consignee in Norway. Due to transport costs savings, whole shiploads are shipped from a GSP-country to a central store in the European Community, for later distribution to other consignees in Europe. It is, however, a precondition for such re-exportation of GSP-products that they continuously have been under customs control in the European Community or Switzerland, and that they have not been subject to any operation other than unloading, reloading, changing of packaging or other operation designed to keep them in good condition. Thus, the goods may not have been released for free circulation or consumption by customs clearance. Furthermore, it is a precondition that Norway and the European Community or Switzerland, respectively, have identical rules of origin for the respective products to be covered by a replacement certificate of origin Form A. For such products re-exported from the European Community or Switzerland, the originating status and entitlement to preferential treatment in Norway must be documented upon presentation of a replacement certificate Form A issued (stamped) by the customs authorities of the European Community or Switzerland, cf. the Customs Regulation 8-4-38 and 8-4-41. Notwithstanding the main provision on direct transport, the Norwegian origin regulation allows on certain conditions for shipments of GSP-products directly from public exhibition, fairs and the like, arranged in another country than the exporting GSP-country. It is a precondition that the products have been continuously under customs control in the country of exhibition, cf. the Customs Regulation 8-4-38 No 2. 9

6. Proof of origin - documentation 6.1. Proof of origin To obtain GSP preferential tariff treatment for a product on importation into Norway, the originating status must be proven upon submission or presentation of a satisfactory proof of origin. Certain consignments of low value are, however, exempt from the requirement of a formal proof of origin, cf. the Customs Regulation 8-5-11 No. 2. A GSP proof of origin must be issued by the exporter in the beneficiary country and shall, as a main rule, be certified by the customs authorities or other authorised bodies of the exporting country, cf. part 1-3 of this publication. Invoice declarations do not need to be approved or stamped by an authorised body. GSP proofs of origin shall always be issued and completed in such a manner as laid down in the applicable rules of origin of the Norwegian GSP scheme. Upon importation into Norway, the originating status and entitlement to preferential treatment shall be documented with a certificate of origin Form A, or as an alternative, an invoice declaration issued by the exporter for consignments where the value of the originating products does not exceed Norwegian kroner 100 000. In accordance with the Norwegian import declaration system, Norwegian importers must at any time be able to prove the basis for GSP preferential tariff treatment upon submission to the customs authorities a valid proof of origin. Norwegian customs authorities may, in accordance with the regulation on rules of origin, through the competent authorities in the GSP-country concerned, verify the authenticity and correctness of proofs of origin submitted. The following proofs of origin are valid under the Norwegian GSP-system: Certificate of origin Form A Invoice declaration Replacement certificate Form A (via the European Community or Switzerland) Movement certificate EUR. 1 (from Norway to a GSP-country for cumulation purposes) 6.1.1. Certificate of origin Form A On exportation of originating products from a GSP-country to Norway, the exporter may issue a certificate of origin Form A. A specimen of the certificate of origin Form A is found in annex 3. A certificate of origin Form A must be completed by the exporter in the beneficiary GSPcountry concerned and signed by the exporter in box 12 (declaration by the exporter). Form A must be stamped and signed by the customs authorities of the GSP-country concerned or another body authorised to certify such certificates, in box 11. Form A shall be printed in English or French, and be completed according to the notes at the back of the form. It must be completed in English or French. Any handwritten information in the certificate must be written in ink and in printed characters. Norwegian customs authorities may, if deemed necessary, request a translation of the information given. Subject to certain conditions it is allowed to issue a duplicate of a Form A as well as a replacement certificate Form A, cf. the Customs Regulation 8-4-41. 10

6.1.2. Invoice declaration As an alternative to certificate of origin Form A, the exporter may upon exportation of originating products from a GSP-country to Norway, issue on the invoice an origin declaration invoice declaration. In order to issue an invoice declaration, it is a precondition that the value of the originating products in the consignment does not exceed NOK 100 000. The provisions for making out an invoice declaration are laid down in 8-5-10 No 2 and 8-5-11 of the Customs Regulation. An invoice declaration must be made out in English or in French. The text of the invoice declaration is found in annex 3. The invoice declaration may be printed, stamped or written on the exporters invoice. The invoice declaration must be signed by the exporter in the GSP-country concerned. 6.1.3. Period of validity Proofs of origin (Form A or an invoice declaration) issued in a GSP-country must be presented to Norwegian customs authorities no later than 10 months after the date of issue in the exporting GSP-country, cf. the Customs Regulation 8-5-12. 6.1.4. Replacement certificate Form A issue on re-exportation (co-operation with the European Community and Switzerland) According to 8-4-41, it is possible to issue a replacement certificate Form A on reexportation of GSP originating products from Norway to the European Community or Switzerland. A replacement certificate Form A may be issued upon application from the (re)exporter and only on the basis of an original certificate of origin Form A, issued and endorsed in the GSP-country concerned. A replacement certificate Form A may be issued for the whole consignment arriving from a GSP-country or for a part of a larger consignment (split consignment). In the same way, upon re-exportation of GSP-products to Norway from either the European Community or Switzerland, a replacement certificate Form A may be issued, and it can form the basis for GSP preferential tariff treatment in Norway. Such replacement certificates shall be issued (endorsed) by the customs authorities at the same location as the goods are, on the basis of the original certificate of origin Form A that was accompanying the goods form the GSP-country concerned. When such replacement certificates Form A are issued, it is assumed that the goods in the transit- or storage country concerned (Norway, the European Community or Switzerland) always have been under customs control/surveillance. I.e. that the goods must be at a customs warehouse, bonded warehouse etc., and have not been cleared by the customs for free circulation. It is further assumed that Norway and/or the European Community or Switzerland has the same preferential rules of origin for the products concerned. Replacement certificates may not be issued on the basis of invoice declarations from a GSPcountry. The rules concerning issuance of replacement certificates does not apply where exceptions are made from the rules of origin according to the Customs Regulation 8-4-40. The same conditional provisions are applicable upon import into Norway from either the European Community or Switzerland. Further details concerning issue and authorisation of replacement certificates are found in the Customs Regulation 8-4-41. 11

6.1.5. Movement certificate EUR. 1 (from Norway to a GSP-country with a view to cumulate) According to the Customs regulation, a certificate of origin EUR.1 or an invoice declaration can be issued upon export from Norway to a GSP-country of origin products, if the products shall undergo a production process in the GSP-country concerned, that makes cumulation necessary. Such proofs of origin issued in Norway will not form the basis for preferential tariff treatment upon import into the GSP-country concerned, but will constitute documentation allowing for cumulation in a production process for later export of the finished product to Norway (or to the European Community or Switzerland), from the point in time when the previously arrangement of diagonal cumulation is effected. Further information can be found in the Customs Regulation 8-4-42. A specimen of the invoice declaration mentioned which form a part of the regulation set out in annex 3. On exportation of originating products from Norway for cumulation purposes in a GSPcountry, the exporter shall indicate in box 2 of the movement certificate one of the following expressions: GSP BENEFICIARY COUNTRY and NORWAY (English version) or PAYS BÉNÉFICIAIRE DU SPG and NORVÈGE (French version) Norwegian exporters authorised as approved exporter by Norwegian customs authorities, can use invoice declaration regardless of value limits. Such exporters shall not be required to sign invoice declarations upon export from Norway, provided that he accepts full responsibility for any invoice declaration which identifies him as if it had been signed in manuscript, cf. Customs Regulation 8-4-20. 6.2. Authorisation of Norwegian approved exporters The Norwegian customs authorities may grant, upon application, to Norwegian exporters authorisations to issue invoice declarations regardless of the value of the consignments, in connection with the export of origin products, according to the GSP regulation, cf. the Customs Regulation 8-5-2. Provided the necessary written undertaking is given, an approved Norwegian exporter shall not be required to sign such invoice declarations. An application form for this use is prepared (RF-0003). 6.3. Low value, non-commercial importations A formal certificate of origin is not required upon importation in to Norway of low value consignments, which are not imported for sale or other trade purposes. It is assumed that the importer submits a declaration that the goods in question fulfil those terms needed to obtain preferential tariff treatment. For low value consignments of GSP goods, it is a requirement that the goods are sent from a private person to a private person or that they form a part of the travellers personal luggage. Furthermore, the total value of the goods in question must not exceed NOK 4100 in the case of small packages sent from a private person to a private person or NOK 10 000 in the case of goods forming a part of travellers personal luggage, cf. the Customs Regulation 8-5-11 No 2. 12

7. Request for preferential tariff treatment GSP preferential tariff treatment can only be granted if the importer (the declarant) claims such treatment on the import declaration upon customs clearance. A satisfactory proof of origin should be presented upon customs clearance for consignments that are originating products according to the Norwegian GSP-system. At the same time a satisfactory proof of origin for the goods in question must be presented. Further details on the Norwegian import procedures are set out in the Norwegian Customs Act and the Customs Regulation. 8. Products covered by the Norwegian GSP-system (scope of products) 8.1. General remarks The product coverage and the preferential offer for products originating in a GSP-country are explained and laid down both in this Chapter and annex 4 (lists 1-5 and 7). The least developed GSP-countries (LDCs) and low income countries are granted a better preferential treatment than the ordinary GSP-countries. The LDCs are the poorest countries in the world. The sharing between the LDCs, the low income countries and the ordinary GSP-countries together with the corresponding scope of products and GSP preferential rates of duty are set out in single list of products in part III of this web-publication. The least developed GSP-countries (LDCs) are in the list of GSP-countries written in capital letters. All GSP goods with origin in a least developed GSP-country are free of duty. The ordinary GSP-countries are in the list of GSP-countries written with ordinary small letters. In order to obtain GSP preferential tariff treatment upon import to Norway, it is a requirement that the Norwegian GSP-system has entered into force for the country concerned. Where the names of the countries are written in bold letters in the list of GSP-countries, it means that the GSP system have entered into force. 8.2. Agricultural products HS Chapters 1 to 24 and HS Headings ex.29.05, ex. 35.02 and ex. 38.23: (a) Least developed GSP-countries (LDCs) and low income countries All GSP-products originating in a least developed GSP-country or low income country are free of duty. Special conditions are applicable for a few products originating in Botswana, Namibia and Swaziland (for detail see annex 4 appendix 1) (b) Ordinary GSP-countries GSP-products originating in an ordinary GSP-country and covered by list 1 are free of duty 13

GSP-products originating in an ordinary GSP-country and covered by list 2 are entitled to preferential tariff treatment (100% reduction of the industrial element, but are subject to the arrangement of price compensation of the agricultural components for the products concerned) GSP-products originating in an ordinary GSP-country and covered by list 3 are entitled to 15% reduction of the normally applied (ordinary) customs duty for the product concerned GSP-products originating in an ordinary GSP-country and covered by list 4 are entitled to 10% reduction of the normally applied (ordinary) customs duty for the product concerned GSP-products originating in an ordinary GSP-country and covered by list 4 b are entitled to 30% reduction of the normally applied (ordinary) customs duty for the product concerned. This applies for products within the WTOs access quota managed by the Norwegian Agriculture Authority. For those who doesn t posses such quota(s) from the Norwegian agricultural authorities, and who import goods from a GSPcountry, the reduction of the normally applied (ordinary) customs duty is 10%. GSP-products originating in an ordinary GSP-country and covered by list 5 are entitled to 50% reduction of the normally applied (ordinary) customs duty for the product concerned Agricultural products originating in an ordinary GSP-country and which are not covered by lists 1 to 5 respectively, are not entitled to GSP preferential tariff treatment upon import to Norway. 8.3. Industrial products HS Chapters 25 to 97 (except HS Headings ex 29.05, ex 35.02 and ex 38.23 mentioned above) (a) Least developed GSP-countries (LDCs) and low income countries All GSP-industrial products of HS Chapters 25 to 97 originating in a least developed GSPcountry or a low income country are dutyfree. Special conditions are applicable for some products originating in Botswana, Namibia and Swaziland (for details se annex 4 appendix 1). (b) Ordinary GSP-countries All industrial products classified in HS Chapters 25 to 97 originating in an ordinary GSPcountry are dutyfree, except for products of HS Headings ex. 29.05, ex. 35.02 and ex. 38.23 mentioned above (which are covered by list 1 and list 4, respectively), in addition to the excluded products covered by list 7. 9. Other provisions 9.1. Verifications The importer may be asked to provide additional documentation and information to support his request for preferential treatment, if the Norwegian customs authorities are in doubt at the time of the customs clearance whether the goods are entitled to preferential tariff treatment or not. If local Norwegian customs authorities finds it necessary to carry out investigations at the premises of the foreign producer or exporter, or wishes to get further information from 14

abroad, the issue will be raised through the Directorate of Customs and Excise. The directorate will send a request to the authorities in the GSP-country concerned for clarification of the facts. The provisions regarding verification are laid down in 8-5-13 of the Customs Regulation. In such cases of verification in the GSP-country concerned, the importer may have the goods released from customs control if paying the total amount of customs duties and other charges, or if providing satisfactory security for these amounts. 15

Annex 1- List of GSP-countries List of Least developed GSP-countries (LDCs) Developing countries for which the Norwegian GSP-system is implemented (effective) are written in bold letters. AFGHANISTAN ANGOLA BANGLADESH BENIN BHUTAN BURKINA FASO BURUNDI CAMBODIA CAPE VERDE ISLANDS CENTRAL AFRICAN REPUBLIC CHAD COMOROS DEMOCRATIC REPUBLIC OF CONGO DJIBOUTI EAST TIMOR EQUATORIAL GUINEA ERITREA ETHIOPIA GAMBIA GUINEA GUINEA-BISSAU HAITI KIRIBATI DEMOCRATIC PEOPLES REPUBLIC OF LAOS LESOTHO LIBERIA MADAGASCAR MALAWI MALDIVES MALI MAURITANIA PEOPLES REPUBLIC OF MOZAMBIQUE [MYANMAR - excluded from 30 May 1997 and until further notice] NEPAL NIGER RWANDA SAMOA SAO TOMÉ AND PRINCIPE SENEGAL SIERRA LEONE SOLOMON ISLANDS SOMALIA SUDAN UNITED REPUBLIC OF TANZANIA TOGO TUVALU UGANDA VANUATU REPUBLIC OF YEMEN ZAMBIA 16

List of low income countries which are not LDC-countries The low income countries which are not LDCs, will benefit from the same duty- and quota free market access as the LDCs upon import to Norway. The condition is that the low income countries in question have a population of less than 75 million. Developing countries for which the Norwegian GSP-system is implemented (effective) are written in bold letters. CAMEROON DEMOCRATIC REPUBLIC OF CONGO GHANA CÔTE D IVOIRE (IVORY COAST) KENYA KYRGYZSTAN KOREA, DEM. REP. MOLDOVA MONGOLIA NICARAGUA PAPUA NEW GUINEA TAJIKISTAN UZBEKISTAN ZIMBABWE This means that the low income countries India, Pakistan, Vietnam and Nigeria, which all have a population over 75 million, do not benefit from the same market access as the LDCs. These four countries are therefore given the same treatment as ordinary developing countries. Developing countries for which the Norwegian GSP-system is implemented (effective) are written in bold letters. INDIA NIGERIA PAKISTAN SOCIALIST REPUBLIC OF VIETNAM 17

List of developing countries given ordinary GSP treatment Countries for which the Norwegian GSP-system is implemented (effective) are written in bold letters¹. Albania Algeria Anguilla Armenia Azerbaijan Antigua and Barbuda Argentina Barbados Belarus Belize Bolivia Bosnia and Herzegovina Botswana Brazil Peoples Republic of China Colombia Cook Islands (New Zealand) Costa Rica Cuba Dominica Dominican Republic Ecuador El Salvador Fiji Gabon Georgia Grenada Guatemala Guyana Honduras Indonesia Iraq Iran Jamaica Kazakhstan Arab Republic of Libya Malaysia Marshall Islands (US) Mauritius Mayotte (France) Micronesia Montenegro Montserrat (UK) Namibia Nauru Niue Islands (New Zealand) Oman Palau Panama Paraguay Peru Philippines Saint Helena (UK) Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Serbia Seychelles South Africa Sri Lanka Surinam Swaziland Syria Thailand Tokelau Islands (New Zealand) Tonga Trinidad and Tobago Turkmenistan Turks and Caicos Islands (UK) Ukraine Uruguay Venezuela Wallis and Fortuna ¹ Developing countries which Norway has a free trade agreement (through EFTA or bilateral) are normally faded out of the GSP-system and are therefore not in the list. GCCs A special transitional arrangement is established for the following countries in the Gulf Cooperation Council: Bahrain, Kuwait, Qatar, Saudi Arabia, United Arab Emirates. It is 18

expected that the EFTA-countries and the GCC will conclude and enter a free trade agreement during 2008/2009, which will mean a phasing out of the GSP-scheme for theses countries. Developing countries for which the GSP-system is implemented are written in bold letters: Bahrain Kuwait Qatar Saudi Arabia United Arab Emirates Botswana, Namibia and Swaziland have special treatment following a previous LDC-status. These countries are now regular GSP-countries. It is established separate rules for these three countries which gives them the same conditions as the LDC-countries, with certain exceptions (see annex 4 appendix 1). 19

Annex 2 summary of authorized authorities This list is not available in English 20

Annex 3 Norwegian Customs Act and Customs Regulation The Norwegian Customs Regulation is unfortunately still not available in English. The Act on Customs Duties and Movement of Goods Chapter 8 Preferential tariffs Section 8-1 Preferential tariffs (Customs Act) 21. December 2007 No. 119 Preferential tariff means a reduction in customs duty, relief from customs duty or any other favourable tariff treatment granted on the basis of a free trade agreement entered into by Norway with another state or group of states, a bilateral or unilateral statement in connection with such an agreement, or a special arrangement unilaterally established by Norway in respect of certain states. Section 8-2 Granting of preferential tariffs on the basis of a free trade agreement, etc. (1) Preferential tariffs are granted for goods covered by a free trade agreement entered into by Norway and that is in force for Norway, or by another arrangement entered into in connection with such an agreement. (2) Preferential tariffs pursuant to subsection (1) are conditional on the origin of the goods being within the scope and extent of the agreement concerned. The origin status of the goods is determined pursuant to the rules of origin laid down in the agreement and the provisions of this Act. (3) The Ministry shall by regulations make public a list of the free trade agreements by which Norway is bound at any given time. Section 8-3 Granting of preferential tariffs on the basis of the Generalised System of Preferences (GSP) for developing countries (1) Preferential tariffs are granted for goods covered by an arrangement unilaterally established by Norway as a generalised system of preferences (GSP) providing for favourable tariff treatment of a group of states. (2) Preferential tariffs pursuant to subsection (1) are conditional on the origin of the goods being within the scope and extent of the arrangement. The origin status of the goods is determined pursuant to the rules of origin for the arrangement and the provisions of this Act. (3) The Ministry shall by regulations make public a list of the countries that are 21

covered by the arrangement of unilateral preferential tariffs at any given time. (4) The Ministry may make regulations concerning a generalised system of preferences pursuant to this section, including in regard to a safety mechanism for cases where the preferential system creates substantial market disturbances. Section 8-4 Preferential rules of origin (1) If the origin of goods is to be determined with a view to preferential tariff treatment, the rules of origin in applicable free trade agreements, or in the Generalised System of Preferences (GSP) for developing countries or other preferential arrangements shall be used as a basis. (2) The Ministry may make regulations concerning the implementation of the rules of origin that follow from applicable free trade agreements, the Generalised System of Preferences (GSP) for developing countries and other preferential arrangements that are applicable to the importation and exportation of products of origin. Section 8-5 Claims for preferential tariff treatment and documentary proof of origin (1) Claims for preferential tariff treatment must be submitted during customs treatment, and the claim must be shown to be legitimate by presenting the necessary documentary proof of the origin of the goods. (2) Such documentation as is mentioned in subsection (1) must satisfy specific formal requirements and must be retained for control purposes for at least ten years from the time of clearance for free circulation. (3) The Ministry may make regulations concerning the submission of claims for preferential tariff treatment and regarding the presentation of proof of origin pursuant to this section, including in regard to the power of the customs authorities to make exceptions in individual cases. Section 8-6 Non-preferential rules of origin (1) If the origin of goods is to be determined and does not follow from a special agreement with a foreign state or organisation regarding preferential tariff treatment, it shall be determined on the basis of the rules of origin in subsections (2), (3) and (4), unless otherwise required by Norway s international legal obligations. The rules in subsections (2), (3) and (4) shall also apply in connection with most favoured treatment under Article I of the General Agreement on Tariffs and Trade, and in connection with the issue of a certificate of origin for goods that are not covered by a free trade agreement or by a unilateral preferential arrangement. (2) Goods shall be regarded as originating in the country where they are wholly produced, or where they underwent their last substantial processing. The territory of a country also covers its territorial sea. (3) Goods wholly produced in a country means: 22

a) mineral products extracted within that country, b) vegetable products harvested in that country, c) live animals born and raised in that country, d) products obtained from live animals that are raised in that country and products obtained from hunting, fishing or trapping in that country, e) products of sea-fishing and other products taken from the sea outside the country s territorial sea, by vessels registered in that country or in the country s register of ships and sailing under the flag of that country, f) goods produced on board factory ships from products referred to in (e), originating in that country, provided that such factory ships are registered in that country or in the country s register of ships and sail under the flag of that country, g) products taken from the seabed or subsoil beneath the seabed outside the territorial sea, provided that that country has exclusive rights to exploit that seabed or subsoil, h) waste and scrap products derived from production processes in a country, and used articles if they were collected in that country and are fit only for the recovery of raw materials, i) goods produced in that country exclusively from goods referred to in (a) to (h), or from their by-products at any stage of production. (4) If two or more countries have participated in the production of goods, the country of origin shall be the country where the last substantial and economically justified processing or working took place, resulting in the manufacture of a new product, or representing an important stage of the manufacture of a product. Repacking, sorting, mixing or minor changes shall not be regarded as processing. (5) The Ministry may make regulations concerning the implementation of the rules of origin pursuant to this section, including in regard to requirements relating to proof of origin and expansion of the applicability of the rules to country of origin labelling, public procurement and trade statistics. 23

List of working or processing rules required to be carried out on non-originating materials in order that the product manufactured can obtain originating status (cf. 8-4-33 of the Customs Regulation) Introductory notes Foreword: These notes shall apply where appropriate to all products manufactured using nonoriginating materials even if they are not subject to specific provisions in the following list but are subject instead to the change of heading rule set out in paragraph 1 of section 4. Note 1: 1.1 The first two columns in the list describe the product obtained. The first column gives the heading number or chapter number used in the Harmonized System, and the second column gives the description of goods used in that System for that heading or chapter. For each entry in the first two columns a rule is specified in column 3. Where, in some cases, the entry in the first column is preceded by an ex, this signifies that the rule in column 3 only applies to the part of that heading or chapter as described in column 2. 1.2 Where several heading numbers are grouped together in column 1 or a chapter number is given and the description of products in column 2 is therefore given in general terms, the adjacent rule in column 3 applies to all products which, under the Harmonized System, are classified in headings of the chapter or in any of the headings grouped together in column 1. 1.3 Where there are different rules in the list applying to different products within a heading, each indent contains the description of that part of the heading covered by the adjacent rule in column 3. Note 2: 2.1 When a heading or part of a heading is not in the list, the change of heading rule set out in paragraph 1 of section 4 applies. If a change of heading condition applies to any entry in the list, then it is covered by the rule in column 3. 2.2 The working or processing required by a rule in column 3 has to be carried out only in relation to the non-originating materials used. The restrictions included in column 3 likewise apply only to the non-originating materials used. 2.3 Where a rule states that materials of any heading may be used, materials of the same heading as the product may also be used, subject, however, to any specific limitations which may also be contained in the rule. However, the expression manufacture from materials of any heading including other 24

materials of heading means that only materials classified in the same heading as the product of a different description than that of the product as given in column 2 of the list may be used. 2.4 If a product made from non-originating materials which has acquired originating status during manufacture by virtue of the change of heading rule or its own list rule is used as a material in the process of manufacture of another product, then the rule applicable to the product in which it is incorporated does not apply to it. Example: An engine of heading No 84.07, for which the rule states that the value of the nonoriginating materials which may be incorporated may not exceed 40% of the ex-works price, is made from 'other alloy steel roughly shaped by forging' of heading No 72.24. If this forging has been forged in the country concerned from a non-originating ingot then the forging has already acquired origin by virtue of the rule for heading No ex 72.24 in the list. It can then count as originating in the value calculation for the engine regardless of whether it was produced in the same factory or another. The value of the nonoriginating ingot is thus not taken into account when adding up the value of the nonoriginating materials used. 2.5 Even if the change of heading rule or the other rules in the list are satisfied, a product shall not acquire originating status if the processing carried out, taken as a whole, is insufficient within the meaning of section 5. Note 3: 3.1 The rule in the list represents the minimum amount of working or processing required and the carrying out of more working or processing also confers originating status; conversely, the carrying out of less working or processing cannot confer origin. Thus if a rule says that non-originating material at a certain level of manufacture may be used, the use of such material at an earlier stage of manufacture is allowed and the use of such material at a later stage is not. 3.2 When a rule in the list specifies that a product may be manufactured from more than one material, this means that any one or more materials may be used. It does not require that all be used. Example: The rule for fabrics says that natural fibres may be used and that chemical materials, among other materials, may also be used. This does not mean that both have to be used; one can use one or the other or both. If, however, a restriction applies to one material and other restrictions apply to other materials in the same rule, then the restrictions only apply to the materials actually used. 25

Example: The rule for sewing machines specifies that both the thread tension mechanism used and the zigzag mechanism used must have originating status; these two restrictions only apply if the mechanisms concerned are actually incorporated into the sewing machine. 3.3 When a rule in the list specifies that a product must be manufactured from a particular material, the condition obviously does not prevent the use of other materials which, because of their inherent nature, cannot satisfy the rule. Example: The rule for prepared food under heading No 19.04 which specifically excludes the use of cereals or their derivatives does not prevent the use of mineral salts, chemicals and other additives which are not produced from cereals. Example: If an article is made from non-woven materials, and if the use of only non-originating yarn is allowed for this class of article, it is not possible to start from non-woven cloth - even if non-woven cloths cannot normally be made from yarn. In such cases, the starting material would normally be at the stage before yarn - that is the fibre stage. See also note 5.2 in connection with textiles. 3.4 Where, in a rule in the list, two or more percentages are given for the maximum value of non-originating materials that can be used, these percentages cannot be added together. In other words, the maximum value of all the non-originating materials used can never exceed the highest of the percentages given. Furthermore, the individual percentages must not be exceeded in relation to the particular materials they apply to. Note 4: 4.1 The term natural fibres is used in the list to refer to fibres other than artificial or synthetic fibres and is restricted to the stages before spinning takes place, including waste, and, unless otherwise specified, the term natural fibres includes fibres that have been carded, combed or otherwise processed but not spun. 4.2 The term natural fibres includes horsehair of heading No 05.03, silk of heading Nos 50.02 and 50.03 as well as the wool fibres, fine or coarse animal hair of heading Nos 51.01 to 51.05, the cotton fibres of heading Nos 52.01 to 52.03 and the other vegetable fibres of heading Nos 53.01 to 53.05. 4.3 The terms textile pulp, chemical materials and paper-making materials are used in the list to describe the materials not classified in chapters 50 to 63, which can be used to manufacture artificial, synthetic or paper fibres or yarns. 4.4 The term man-made staple fibres is used in the list to refer to synthetic or artificial filament tow, staple fibres or waste, of heading Nos 55.01 to 55.07. 26

Note 5: 5.1 Any non-textile trimmings and accessories or other materials used which contain textiles do not have to satisfy the conditions set out in column 3 even though they fall outside the scope of Note 3.3. 5.2 In accordance with Note 3.3, any non-originating non-textile trimmings and accessories or other product, which do not contain any textiles, may be used freely where they cannot be made from the materials listed in column 3. Example: If a rule in the list says that for a particular textile item, such as a blouse, yarn must be used, this does not prevent the use of metal items, such as buttons, because they cannot be made from textile materials. Similarly, this does not prevent the use of a zip, even though zips normally contain textiles. 5.3 Where a percentage rule applies, the value of trimmings and accessories must be taken into account when calculating the value of the non-originating materials incorporated. Note 6: 6.1 For the purposes of headings ex 27.07, 27.13 to 27.15, ex 29.01, ex 29.02 and ex 34.03 the following are regarded as special processes : a. vacuum distillation; b. redistillation by a very thorough process of fractionation; c. cracking; d. reforming; e. extraction by means of selective solvents; f. a process involving all the following operations: processing using concentrated sulphuric acid, oleum or sulphuric anhydride; neutralization using alkaline agents, decolourization and purification using naturally active earth, activated earth, activated charcoal or bauxite; g. polymerization; h. alkylation; ij. isomerization. 6.2 For the purpose of headings ex 27.10, 27.11 and 27.12, the following are regarded as special processes : a. vacuum distillation; b. redistillation by a very thorough process of fractionation; c. cracking; d. reforming; e. extraction using selective solvents; f. a process involving all the following operations: processing using concentrated sulphuric acid, oleum or sulphuric anhydride; neutralization using alkaline agents, decolourization and purification using naturally active earth, activated earth, activated charcoal or bauxite; g. polymerization; 27

h. alkylation; ij. isomerization; k. only applicable to heavy oils classified under heading 27.10: desulphurization using hydrogen which results in a reduction in the sulphur content in the processed product of at least 85 per cent (ASTM D 1266-59 T method); l. only applicable to products classified under heading 27.10: deparaffining other than by filtration; m. only applicable to heavy oils classified under heading 27.10: treatment using hydrogen at a pressure of more than 20 bars and a temperature of more than 250ºC using a catalyst, when the hydrogen constitutes an active element in a chemical reaction and is not merely used as a means of desulphurization. The further hydrogenation of lubricating oils under heading ex 27.10 (e.g. hydrofinishing or decolouring), especially to improve colour or stability, shall not, however, be regarded as a special process; n. only applicable to fuel oils classified under heading ex 27.10: atmospheric distillation, provided that less than 30 per cent by volume of these products distils (including losses) at 300 o C in accordance with the ASTM D 86 method; o. only applicable to heavy oils other than gas oils or fuel oils classified under heading ex 27.10: processing by high-frequency electrical brush-discharge. 6.3 With regard to goods under headings ex 27.07, 27.13 to 27.15, ex 29.01, ex 29.02 and ex 34.03, simple operations such as cleaning, decanting, desalting, water separation, filtering, colouring, marking, mixing of products with varying sulphur content to obtain a certain level of sulphur content, or combinations of these or similar processes, shall not confer originating status. 28

List of processing rules HS Heading Description of product Working or processing Carried out on non-originating materials that confers originating status (1) (2) (3) 02.01 Meat of bovine animals, fresh or chilled Manufacture from materials of any heading except meat of bovine animals, frozen of heading 02.02 02.02 Meat of bovine animals, frozen Manufacture from materials of any heading except meat of bovine animals, fresh or chilled of heading 02.01 02.06 Edible offal of bovine animals, swine, sheep, goats, horses, asses, mules or hinnies, fresh, chilled or frozen 02.10 Meat and edible meat offal, salted, in brine, dried or smoked; edible flours and meals of meat or meat offal 03.02 to 03.05 04.02, 04.04 to 04.06 Manufacture from materials of any heading except carcasses of headings 02.01 to 02.05 Manufacture from materials of any heading except meat and offal of headings 02.01 to 02.06 and 02.08 or poultry liver of heading 02.07 Fish, other than live fish Manufacture in which all the materials of Chapter 3 used must be wholly obtained Dairy products Manufacture from materials of any heading except milk or cream of heading 04.01 or 04.02 04.03 Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa 04.08 Birds' eggs, not in shell and egg yolks, fresh, dried, cooked, by steaming or by boiling in water, moulded, frozen or otherwise preserved, whether or not containing added sugar or other sweetening matter Manufacture in which: - all the materials of Chapter 4 used must be wholly obtained, - any fruit juice of heading 20.09 or sucrose used must be originating, and - the value of any materials of Chapter 18 used does not exceed 40% of the ex-works price of the product Manufacture from materials of any heading except birds' eggs of heading 04.07 ex 05.06 Bones and horn-cores, unworked Manufacture in which all the materials of Chapter 2 used must be wholly obtained ex 07.10 to 07.13 Manufacture in which all the vegetable materials used must be wholly obtained Vegetables, frozen, dried or provisionally preserved; except for headings ex 07.10 and ex 07.11 for which the rules are set out below: ex 07.10 Sweet corn (uncooked or cooked by Manufacture from fresh or chilled sweet corn steaming or boiling in water), frozen ex 07.11 Sweet corn, provisionally preserved Manufacture from fresh or chilled sweet corn 08.11 Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter: - Containing added sugar Manufacture in which all the materials used must already be originating - Other Manufacture in which all the fruit or nuts used must be wholly obtained 08.12 Fruit and nuts provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption Manufacture in which all the fruit or nuts used must be wholly obtained 29

08.13 Fruit, dried, other than that of headings 08.01 to 08.06; mixtures of nuts or dried fruits of this Chapter 08.14 Peel of citrus fruit or melons (including watermelons), fresh, frozen, dried or provisionally preserved in brine, in sulphur water or in other preservative ex Chapter 11 solutions Products of the milling industry; malt, starches; inulin; wheat gluten, except for heading ex 11.06 for which the rule is set out below: ex 11.06 Flour, meal and powder of leguminous vegetables of heading No 07.13 13.01 Lac; natural gums, resins, gum-resins and oleoresins (for example, balsams) Manufacture in which all the fruit or nuts used must be wholly obtained Manufacture in which all the fruit or nuts used must be wholly obtained Manufacture in which all the cereals, edible vegetables, roots and tubers of heading 07.14 or fruit used must be wholly obtained Drying and milling of leguminous vegetables of heading 07.08 Manufacture in which the value of any materials of heading 13.01 used may not exceed 50% of the ex-works price of the product ex 13.02 Vanilla oleoresin Manufacture in which all the materials used is classified under a heading other than that of the product. However, materials from heading 13.02 may be used provided their value does not exceed 20% of the ex-works price of the product 15.01 Pig fat (including lard) and poultry fat, other than that of headings 02.09 or 15.03 - Fats from bones or waste Manufacture from materials of any heading except those of headings 02.03, 02.06 or 02.07 or bones of heading 05.06 - Other Manufacture from meat or edible offal of swine of headings 02.03 or 02.06 or of meat and edible offal of poultry of heading 02.07 15.02 Fats of bovine animals, sheep or goats, other than those of heading 15.03 - Fats from bones or waste Manufacture from materials of any heading except materials of headings 02.01, 02.02, 02.04 or 02.06 or bones of heading 05.06 - Other Manufacture in which all the animal materials of Chapter 2 used must be wholly obtained 15.04 Fats and oils and their fractions, of fish or marine mammals, whether or not refined, but not chemically modified: - Solid fractions Manufacture from materials of any heading including other materials of heading 15.04 - Other Manufacture in which all the animal materials of Chapters 2 and 3 used must be wholly obtained ex 15.05 Refined lanolin Manufacture from crude wool grease of heading 15.05 15.06 Other animal fats and oils and their fractions, whether or not refined, but not chemically modified: - Solid fractions Manufacture from materials of any heading including other materials of heading No 15.06 - Other Manufacture in which all the animal materials of Chapter 2 used must be wholly obtained ex 15.07 to 15.15 Fixed vegetable oils and their fractions, whether or not refined, but not chemically modified: - Solid fractions, except for that of Jojoba oil Manufacture from other materials of headings 15.07 to 15.15 30

- Other, except for: - - Tung oil; oiticica oil; myrtle wax and Japan wax - - Those for technical or industrial uses other than the manufacture of foodstuffs for human consumption ex 15.16 Animal or vegetable fats and oils and their fractions, re-esterified, whether or not refined, but not further prepared ex 15.17 Edible liquid mixtures of vegetable oils of headings 15.07 to 15.15 16.01 Sausages and similar products, of meat, meat offal or blood; food preparations based on these products 16.02 Other prepared or preserved meat, meat offal or blood; 16.03 Extracts and juices of meat, fish or crustaceans, molluscs or other aquatic invertebrates 16.04 Prepared or preserved fish; caviar and caviar substitutes prepared from fish eggs 16.05 Crustaceans, molluscs and other aquatic invertebrates, prepared or preserved ex 17.01 Cane or beet sugar and chemically pure sucrose, in solid form, flavoured or coloured Manufacture in which all the vegetable materials used must be wholly obtained Manufacture in which all the animal and vegetable materials used must be wholly obtained Manufacture in which all the vegetable materials used must be wholly obtained Manufacture from animals of Chapter 1 Manufacture from animals of Chapter 1 Manufacture from animals of Chapter 1. However, all fish, crustaceans, molluscs or other aquatic invertebrates used must be wholly obtained Manufacture in which all the fish or fish eggs used must be wholly obtained Manufacture in which all the crustaceans, molluscs or other aquatic invertebrates used must be wholly obtained Manufacture in which all the materials used are classified under a heading other than that of the product. However, all flavourings and colourings used must already be originating 17.02 Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel: - Chemically pure maltose and fructose Manufacture from materials of any heading including other materials of heading 17.02 - Other Manufacture in which all the materials used must already be originating ex 17.03 Molasses resulting from the extraction or refining of sugar, flavoured or coloured Manufacture in which all the materials used are classified under a heading other than that of the product. However, all flavourings and colourings used must already be originating 17.04 Sugar confectionery (including white chocolate), not containing cocoa Manufacture from materials which are not classified under Chapter 17. However, all flavourings and colourings used must already be originating 18.04 Cocoa butter, fat and oil Manufacture in which all cocoa beans used must 18.06 Chocolate and other food preparations containing cocoa 19.01 Malt extract; food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than 40% by weight of cocoa calculated on a be wholly obtained Manufacture in which all the materials used are classified under a heading other than that of the product, provided the value of any materials of Chapter 18 used does not exceed 40% of the exworks price of the product and that all sugar used of heading 17.01 must already be originating 31

totally defatted basis, not elsewhere specified or included,; food preparations of goods of headings 04.01 to 04.04, not containing cocoa or containing less than 5% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included - Malt extract Manufacture from cereals of Chapter 10 - Other Manufacture in which all the materials used is classified under a heading other than that of the product. However, sugar of heading 17.01 cannot be used 19.02 Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or not prepared 19.03 Tapioca and substitutes therefore prepared from starch, in the form of flakes, grains, pearls, siftings or in similar forms Manufacture in which all the cereals (except durum wheat), meat, meat offal, fish, crustaceans or molluscs used must be wholly obtained Manufacture in which all materials used must already be originating 19.04 Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example, corn flakes); cereals, other than maize (corn), in grain form or in the form of flakes or other worked grains (except flour, groats and meal), precooked or otherwise prepared, not elsewhere specified or included - Not containing cocoa Manufacture in which all materials used must already be originating - Containing cocoa Manufacture from materials of any heading, including other materials of heading 19.04, except sugar of heading 17.01, provided the value of any materials of Chapter 18 used does not exceed 40% of the ex-works price of the product 19.05 Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products 20.01 Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid 20.02 Tomatoes prepared or preserved otherwise than by vinegar or acetic acid 20.03 Mushrooms and truffles, prepared or preserved otherwise than by vinegar or acetic acid 20.04 and 20.05 Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen or not frozen, other than products of heading 20.06 Manufacture from materials of any heading, except those of Chapter 11 Manufacture in which all the vegetables, fruit or nuts used must be wholly obtained Manufacture in which all the tomatoes used must be wholly obtained Manufacture in which all the mushrooms or truffles used must be wholly obtained Manufacture in which all the vegetables used must be wholly obtained 20.06 Vegetables, fruit, nuts, fruit-peel and other parts of plants, preserved by sugar (drained, glacé or crystallized) Manufacture in which all the vegetables, fruit, nuts and other parts of plants, and all the sugar of Chapter 17 must already be originating 20.07 Jams, fruit jellies, marmalades, fruit or Manufacture in which all the fruits, nuts and all the 32

nut purée and fruit or nut pastes, obtained by cooking, whether or not containing added sugar or other sweetening matter 20.08 Fruit, nuts and other edible parts of plants otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included: - Fruit and nuts cooked otherwise than by steaming or boiling in water, not containing added sugar, frozen ex 20.09 sugar of Chapter 17 must already be originating Manufacture in which all the fruit and nuts used must be wholly obtained - Other Manufacture in which all the fruits, nuts, seeds and other materials of Chapters 8 and 9 and all the sugar used or the beverages, ethyl alcohol and vinegar of Chapters 17 or 22 must already be originating Fruit and vegetable juices (including grape must), unfermented and not containing added spirit, whether or not containing added sugar or other sweetening matter ex 21.01 Roasted chicory and extracts, essences and concentrates thereof 21.03 - Sauces and preparations therefore; mixed condiments and mixed seasonings Manufacture in which all the fruits, nuts or vegetables of Chapters 8 and 9 and all the sugar of Chapter 17 must already be originating Manufacture in which all the chicory used must be wholly obtained Manufacture in which all the materials used are classified under a heading other than that of the product. However, mustard flour or meal or prepared mustard may be used - Prepared mustard Manufacture from mustard flour or meal 21.04 Soups and broths and preparations therefore; homogenized composite food preparations - Soups and broths and preparations therefore Manufacture from materials of any heading, except prepared or preserved vegetables of headings 20.02 to 20.05 - Homogenized composite food preparations The rule for the heading in which the product would be classified in bulk shall apply 21.05 Ice-cream containing chocolate Manufacture in which all the materials used are classified under a heading other than that of the product, provided the value of any materials of Chapter 18 used does not exceed 40% of the exworks price of the product ex 21.06 Sugar syrups, flavoured or coloured Manufacture in which all the materials used must be wholly obtained 22.01 Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow 22.02 Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and other non-alcoholic beverages, not including fruit or vegetable juices of heading 20.09 ex 22.04 Wine of fresh grapes, including fortified wines; and grape must with the addition of alcohol Manufacture in which all the water used must already be originating Manufacture in which all the materials used is classified under a heading other than that of the product. However, all fruit juices used must be wholly obtained Manufacture from other grape must 33

22.05, ex 22.07, ex 22.08 and ex 22.09 ex 22.08 ex 23.03 ex 23.06 The following, containing grape materials: - vermouth and other wine of fresh grapes flavoured with plants or aromatic substances; - ethyl alcohol and other spirits, denatured or not; liqueurs - vinegar Whiskies of an alcoholic strength by volume of less than 50% vol. Residues from the manufacture of starch from maize (excluding concentrated steeping liquors), of a protein content, calculated on the dry product, exceeding 40% by weight Oil cake and other solid residues resulting from the extraction of olive oil, containing more than 3% of olive oil 23.09 Preparations of a kind used in animal feeding 24.02 Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes Manufacture from materials of any heading, except grapes or any material derived from grapes Manufacture in which the value of any cereal based spirits used does not exceed 15% of the ex-works price of the product Manufacture in which all the maize used must be wholly obtained Manufacture in which all the olives used must be wholly obtained Manufacture in which all the cereals, sugar or molasses, meat or milk used must already be originating Manufacture in which at least 70% by weight of the unmanufactured tobacco or tobacco refuse of heading 24.01 used must already be originating ex 24.03 Smoking tobacco Manufacture in which at least 70% by weight of the unmanufactured tobacco or tobacco refuse of heading 24.01 used must already be originating ex 25.04 ex 25.15 ex 25.16 Natural crystalline graphite, with enriched Enriching of the carbon content, purifying and carbon content, purified and ground grinding of crude crystalline graphite Marble, merely cut by sawing or Cutting, by sawing or otherwise, of marble (even if otherwise into blocks or slabs of a already sawn) of a thickness exceeding 25 cm rectangular (including square) shape, of a thickness not exceeding 25 cm Granite porphyry, basalt, sandstone and other monumental and building stones, merely cut by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape, of a thickness not exceeding 25 cm Cutting, by sawing or otherwise, of stone (even if already sawn) of a thickness exceeding 25 cm ex 25.18 Calcined dolomite Calcination of dolomite not calcined ex 25.19 Crushed natural magnesium carbonate (magnesite), in hermetically sealed containers, and magnesium oxide, whether or not pure, other than fused magnesia or dead-burned (sintered) magnesia ex 25.20 Plasters specially prepared for use in dentistry Manufacture in which all the materials used is classified under a heading other than that of the product. However, natural magnesium carbonate (magnesite) may be used Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product ex 25.24 Natural asbestos fibres Manufacture from asbestos concentrate ex 25.25 Mica powder Grinding of mica or mica waste ex 25.30 Earth colours, calcined or powdered Calcination or grinding of earth colours ex 27.07 Oils in which the weight of the aromatic constituents exceeds that of the nonaromatic constituents, being oils similar to mineral oils obtained by distillation of high temperature coal tar, of which more than 65% by volume distils at a Refining and/or one or more special processes 1 OR Other operations in which all the materials used are classified within a heading other than that of the product. However, materials classified under the same heading may be used provided their value 34

ex 27.09 27.10 to 27.12 temperature of up to 250ºC (including does not exceed 50% of the ex-works price of the mixtures of petroleum spirit and benzole), product for use as power or heating fuels Crude oils obtained from bituminous Destructive distillation of bituminous minerals minerals Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations not elsewhere specified or included, containing by weight 70% or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the base constituents of the preparations; waste oils. Refining and/or one or more special processes 1 OR Other operations in which all the materials used are classified in a heading other than that of the product. However, materials classified under the same heading may be used provided their value does not exceed 50% of the ex-works price of the product 27.13 to 27.15 ex Chapter 28 Petroleum gases and other gaseous hydrocarbons Petroleum jelly; paraffin wax, microcrystalline petroleum wax, slack wax, ozokerite, lignite wax, peat wax, other mineral waxes, and similar products obtained by synthesis or by other processes, whether or not coloured Petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained from bituminous minerals Bitumen and asphalt, natural; bituminous or oil shale and tar sand; asphaltites and asphaltic rock Bituminous mixtures based on natural asphalt, on natural bitumen, on petroleum bitumen, on mineral tar or on mineral tar pitch (for example, bituminous mastic, cut-backs) Inorganic chemicals; organic or inorganic compounds of precious metals, of rare earth metals, of radioactive elements or of isotopes; except for headings ex 28.11 and ex 28.33 for which the rules are set out below: Refining and/or one or more special processes 1 OR Other operations in which all the materials used are classified under a heading other than that of the product. However, materials classified under the same heading may be used provided their value does not exceed 50% of the ex-works price of the product Manufacture in which all the materials used is classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product ex 28.11 Sulphur trioxide Manufacture from sulphur dioxide ex 28.33 Aluminium sulphate Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product ex Chapter 29 ex 29.01 Organic chemicals, except for headings ex 29.01, ex 29.02, ex 29.05, 29.15, ex 29.32, 29.33 and 29.34, for which the rules are set out below: Acyclic hydrocarbons for use as power or heating fuels Manufacture in which all the materials used is classified within a heading other than that of the product. However, materials classified under the same heading may be used provided their value does not exceed 20% of the ex-works price of the product Refining and/or one or more special processes 1 OR Other operations in which all the materials used are classified under a heading other than that of the product. However, materials classified under the same heading may be used provided their value does not exceed 50% of the ex-works price of the product 35

ex 29.02 ex 29.05 Cyclanes and cyclenes (other than azulenes), benzene, toluene, xylenes, for use as power or heating fuels Metal alcoholates of alcohols of this heading and of ethanol or glycerol 29.15 Saturated acyclic monocarboxylic acids and their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives ex 29.32 Heterocyclic compounds with oxygen heteroatom(s)only: - Internal ethers and their halogenated, sulphonated, nitrated or nitrosated derivates - Cyclic acetals and internal hemiacetals and their halogenated, sulphonated, nitrated or nitrosated derivates 29.33 Heterocyclic compounds with nitrogen hetero-atom(s) only 29.34 Nucleic acids and their salts, whether or not chemically defined; other heterocyclic compounds ex Chapter 30 Pharmaceutical products, except for headings 30.02, 30.03, 30.04, 30.05 and ex 30.06 for which the rules are set out below: 30.02 Human blood; animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera and other blood fractions and modified immunological products, including those obtained by biotechnological processes; vaccines, toxins, cultures of micro-organisms (excluding yeasts) and similar products: - Products consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses or unmixed products for these uses, put up in measured doses or in forms or packings for retail sale Refining and/or one or more special processes 1 OR Other operations in which all the materials used are classified in a heading other than that of the product. However, materials classified under the same heading may be used provided their value does not exceed 50% of the ex-works price of the product Manufacture from materials of any heading, including other materials of heading 29.05. However, metal alcoholates of this heading may be used, provided their value does not exceed 20% of the ex-works price of the product Manufacture from materials of any heading. However, the value of all the materials of headings 29.15 and 29.16 used may not exceed 20% of the ex-works price of the product Manufacture from materials of any heading. However, the value of all the materials of heading 29.09 used may not exceed 20% of the ex-works price of the product Manufacture from materials of any heading Manufacture from materials of any heading. However, the value of all the materials of headings 29.32 and 29.33 used may not exceed 20% of the ex-works price of the product Manufactured from materials of any heading. However, the value of all the materials of headings 29.32, 29.33 and 29.34 used may not exceed 20% of the ex-works price of the product Manufacture in which all the materials used is classified under a heading other than that of the product. However, materials classified under the same heading may be used provided their value does not exceed 20% of the ex-works price of the product Manufacture from materials of any heading, including other materials of heading 30.02. The materials of this description may also be used, provided their value does not exceed 20% of the ex-works price of the product - Other: -- human blood Manufacture from materials of any heading, including other materials of heading 30.02. The 36

30.03 and 30.04 -- animal blood prepared for therapeutic or prophylactic uses -- blood fractions other than antisera, haemoglobin and serum globulin -- haemoglobin, blood globulin and serum globulin materials of this description may also be used, provided their value does not exceed 20% of the ex-works price of the product Manufacture from materials of any heading, including other materials of heading 30.02. The materials of this description may also be used, provided their value does not exceed 20% of the ex-works price of the product Manufacture from materials of any heading, including other materials of heading 30.02. The materials of this description may also be used, provided their value does not exceed 20% of the ex-works price of the product Manufacture from materials of any heading, including other materials of heading 30.02. The materials of this description may also be used, provided their value does not exceed 20% of the ex-works price of the product -- other Manufacture from materials of any heading, including other materials of heading 30.02. The materials of this description may also be used, provided their value does not exceed 20% of the ex-works price of the product Medicaments (excluding goods of headings 30.02, 30.05 and 30.06) 30.05 Wadding, gauze, bandages and similar articles (e.g. dressings, adhesive plasters, poultices): impregnated or coated with pharmaceutical substances or put up in forms or packings for retail sale for medicinal, surgical, dental or veterinary use ex 30.06 Chemical contraceptive preparations based on hormones, on other products of heading 29.27 or on spermicides; ex Chapter 31 ex 31.05 ex Chapter 32 bone cement Fertilizers except for heading ex 31.05, for which the rules are set out below: Mineral or chemical fertilizers containing two or three of the fertilizing elements nitrogen, phosphorus and potassium; other fertilizers; goods of this Chapter, in tablets or similar forms or in packages of a gross weight not exceeding 10 kg, except for: - sodium nitrate - calcium cyanamide - potassium sulphate - magnesium potassium sulphate Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks; Manufacture from materials other than active substances. However, materials of headings 30.03 or 30.04 may be used provided their value, taken together, does not exceed 20% of the ex-works price of the product Manufacture from materials of any heading, except pharmaceutical substances. However, the value of materials of heading 30.05 used may not exceed 20% of the ex-works price of the product Manufacture from materials of any heading, except active substances Manufacture in which all the materials used is classified under a heading other than that of the product. However, materials classified under the same heading may be used provided their value does not exceed 20% of the ex-works price of the product Manufacture in which: - all the materials used are classified under a heading other than that of the product. However, materials classified under the same heading may be used provided their value does not exceed 20% of the ex-works price of the product, and - the value of all the materials used does not exceed 50% of the ex-works price of the product Manufacture in which all the materials used is classified under a heading other than that of the product. However, materials classified under the same heading may be used provided their value 37

except for headings ex 32.01 and 32.05, for which the rules are set out below: ex 32.01 Tannins and their salts, ethers, esters and other derivatives 32.05 Colour lakes; preparations as specified in note 3 to this Chapter based on colour lakes ii ex Chapter 33 ex 33.01 ex 33.06 ex Chapter 34 ex 34.03 Essential oils and resinoids; perfumery, cosmetic or toilet preparations; except for headings ex 33.01 and ex 33.06, for which the rules are set out below: Essential oils (terpeneless or not), including concretes and absolutes; resinoids; concentrates of essential oils in fats, in fixed oils, in waxes or the like, obtained by enfleurage or maceration; terpenic by-products of the deterpenation of essential oils; aqueous distillates and aqueous solutions of essential oils Yarn used to clean between the teeth (dental floss) Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster; except for headings ex 34.03 and 34.04, for which the rules are set out below Lubricating preparations containing less than 70% by weight of petroleum oils or oils obtained from bituminous minerals does not exceed 20% of the ex-works price of the product Manufacture from tanning extracts of vegetable origin Manufacture from materials of any heading, except headings 32.03, 32.04 and 32.05. However, materials of heading 32.05 may be used provided their value does not exceed 20% of the ex-works price of the product Manufacture in which all the materials used is classified under a heading other than that of the product. However, materials classified under the same heading may be used provided their value does not exceed 20% of the ex-works price of the product Manufacture from materials of any heading, including materials of a different group iii under this heading. However, materials of the same "group" may be used, provided their value does not exceed 20% of the ex-works price of the product Manufacture from: - natural fibres not carded or combed or otherwise processed for spinning, - chemical materials or textile pulp, or - materials for the manufacture of paper Manufacture in which all the materials used is classified under a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product Refining and/or one or more special processes¹ OR Other operations in which all the materials used are classified under a heading other than that of the product. However, materials classified under the same heading may be used provided their value does not exceed 50% of the ex-works price of the product ex 34.04 ex Chapter 35 Artificial waxes and prepared waxes with a basis of paraffin, petroleum waxes, waxes obtained from bituminous minerals, slack wax or scale wax Albuminoidal substances; modified starches; glues; enzymes; except for headings 35.05 and ex 35.07 for which the rules are set out below 35.05 Dextrins and other modified starches (for Manufacture in which all the materials used is classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 50% of the ex-works price of the product Manufacture in which all the materials used is classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 50% of the ex-works price of the product 38

ex 35.07 example, pregelatinized or esterified starches); glues based on starches, or on dextrins or other modified starches: - Starch ethers and esters Manufacture from materials of any heading, including other materials of heading 35.05 - Other Manufacture from materials of any heading, except those of heading 11.08 Prepared enzymes not elsewhere specified or included Chapter 36 Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations ex Chapter 37 Photographic or cinematographic goods; except for headings 37.01, 37.02 and 37.04 for which the rules are set out below: 37.01 Photographic plates and film in the flat, sensitised, unexposed, of any material other than paper, paperboard or textiles; instant print film in the flat, sensitised, unexposed, whether or not in packs 37.02 Photographic film in rolls, sensitised, unexposed, of any material other than paper, paperboard or textiles; instant print film in rolls, sensitized, unexposed 37.04 Photographic plates, film, paper, paperboard and textiles, exposed but not developed ex Chapter 38 ex 38.01 Miscellaneous chemical products; except for headings ex 38.01, ex 38.03, ex 38.05, ex 38.06, ex 38.07, ex 38.11, 38.08 to 38.14, 38.18 to 38.20, 38.22, 38.23 and 38.24 for which the rules are set out below: - Colloidal graphite in suspension in oil and semicolloidal graphite; carbonaceous pastes for electrodes - Graphite in paste form, being a mixture of more than 30% by weight of graphite with mineral oils Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product Manufacture in which all the materials used is classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product Manufacture in which all the materials used is classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product Manufacture in which all the materials used are classified under a heading other than headings 37.01 or 37.02 Manufacture in which all the materials used are classified within a heading other than headings 37.01 or 37.02 Manufacture in which all the materials used are classified within a heading other than headings 37.01 to 37.04 Manufacture in which all the materials used is classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product Manufacture in which the value of the materials of heading 34.03 used must not exceed 20% of the ex-works price of the product ex 38.03 Refined tall oil Refining of crude tall oil ex 38.05 Spirits of sulphate turpentine, purified Purification by distillation or refining of raw spirits of sulphate turpentine ex 38.06 Ester gums Manufacture from resin acids ex 38.07 Wood pitch (wood tar pitch) Distillation of wood tar ex 38.11 38.08 to 38.14, 38.18 to 38.20, 38.22 and Prepared additives for lubricating oil, containing petroleum oils or oils obtained from bituminous minerals Various chemical products: Manufacture in which the value of the materials of heading 38.11 used does not exceed 50% of the ex-works price of the product 39

38.24 - The following of heading 38.24: -- prepared binders for foundry moulds or cores based on natural resinous products -- naphthenic acids, their water insoluble salts and their esters -- sorbitol other than that of heading 29.05 -- petroleum sulphonates, excluding petroleum sulphonates of alkali metals, of ammonium or of ethanolamines; thiophenated sulphonic acids of oils obtained from bituminous minerals, and their salts -- ion exchangers -- getters for vacuum tubes -- alkaline iron oxide for the purification of gas -- ammoniacal gas liquors and spent oxide produced in coal gas purification -- sulphonaphthenic acids, their water insoluble salts and their esters -- fusel oil and Dippel's oil -- mixtures of salts having different anions -- copying pastes with a basis of gelatin, whether or not on a paper or textile backing Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product - Other Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product ex 38.23 Industrial fatty alcohols Manufacture from materials of any heading, including fatty acids of heading 38.23 39.01 to 39.15 39.16 to 39.21 Plastics in primary forms, waste, parings and scrap, of plastic: - Addition homopolymerization products Manufacture in which: - the value of all the materials used does not exceed 50% of the ex-works price of the product, and - the value of any materials of Chapter 39 used does not exceed 20% of the ex-works price of the product iv - Other Manufacturing in which the value of the materials of Chapter 39 used does not exceed 20% of the exworks price of the product 4 Semi-manufactures of plastics: - Flat products, further worked than only surface-worked or cut into forms other than rectangles; other products, further worked than only surface-worked - Other: -- Addition homopolymerization products Manufacturing in which the value of the materials of Chapter 39 used does not exceed 50% of the exworks price of the product Manufacture in which: - the value of all the materials used does not exceed 50% of the ex-works price of the product, and - the value of any materials of Chapter 39 used 40

39.22 to 39.26 does not exceed 20% of the ex-works price of the product 4 -- Other Manufacture in which the value of any materials of Chapter 39 used does not exceed 20% of the exworks price of the product 4 Articles of plastic ex 40.01 Laminated slabs of crepe rubber for shoes 40.05 Compounded rubber, unvulcanised, in primary forms or in plates, sheets or strip 40.12 Retreaded or used pneumatic tyres of rubber; solid or cushion tyres, tyre treads and tyre flaps, of rubber Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product Lamination of sheets of natural rubber Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product Manufacture from materials of any heading, except those of headings 40.11 or 40.12 ex 40.17 Articles of hard rubber Manufacture from hard rubber ex 41.02 Raw skins of sheep or lambs, without wool on Removal of wool from sheep or lamb skins, with wool on 41.04 to 41.07 ex 41.14 Leather, without hair or wool other than leather of subheading 4114.10 and 4114.20. Patent leather and patent laminated leather; metallised leather ex 43.02 Tanned or dressed furskins, assembled plates, crosses and similar forms 43.03 Articles of apparel, clothing accessories and other articles of furskin ex 44.07 Wood sawn or chipped lengthways, sliced or peeled, of a thickness exceeding 6 mm, planed, sanded or endjointed ex 44.08 ex 44.09 ex 44.10 to ex 44.13 ex 44.15 ex 44.16 Sheets for veneering (including those obtained by slicing laminated wood), for plywood or for similar laminated wood and other wood, sawn lengthwise, sliced or peeled, whether or not planed, sanded, spliced or end-jointed, of a thickness not exceeding 6 mm Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sanded or end-jointed Retanning of pre-tanned leather OR Manufacture in which all the materials used are classified under a heading other than that of the product Manufacture from leather of headings 41.04 to 41.07, 41.12 or 41.13 provided its value does not exceed 50% of the ex-works price of the product Manufacture from non-assembled, tanned or dressed furskins Manufacture from non-assembled, tanned or dressed furskins, of heading 43.02 Planing, sanding or end-jointing Splicing, planing, sanding or end-jointing Sanding or end-jointing - Beadings and mouldings Beading or moulding Beadings and mouldings, including Beading or moulding moulded skirting and other moulded boards Packing cases, boxes, crates, drums and similar packings, of wood Casks, barrels, vats, tubs and other coopers' products and parts thereof, of wood Manufacture from boards not cut to size Manufacture from riven staves, not further worked than sawn on the two principal surfaces ex 44.18 - Builders' joinery and carpentry of wood Manufacture in which all the materials used is 41

classified within a heading other than that of the product. However, cellular wood panels, shingles and shakes may be used - Beadings and mouldings Beading or moulding ex 44.21 Match splints; wooden pegs or pins for footwear Manufacture from wood of any heading except drawn wood of heading 44.09 45.03 Articles of natural cork Manufacture from cork of heading 45.01 ex 48.11 Paper and paperboard, ruled, lined or squared only Manufacture from paper-making materials of Chapter 47 48.16 Carbon paper, self-copy paper and other copying or transfer papers (other than Manufacture from paper-making materials of Chapter 47 those of heading 48.09), duplicator stencils and offset plates, of paper, whether or not put up in boxes 48.17 Envelopes, letter cards, plain postcards and correspondence cards, of paper or paperboard; boxes, pouches, wallets and writing compendiums, of paper or paperboard, containing an assortment of paper stationery Manufacture in which: - all the materials used are classified within a heading other than that of the product, and - the value of all the materials used does not exceed 50% of the ex-works price of the product ex 48.18 Toilet paper Manufacture from paper-making materials of ex 48.19 Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibres Chapter 47 Manufacture in which: - all the materials used are classified within a heading other than that of the product, and - the value of all the materials used does not exceed 50% of the ex-works price of the product ex 48.20 Letter pads Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product ex 48.23 Other paper, paperboard, cellulose wadding and webs of cellulose fibres, cut to size or shape 49.09 Printed or illustrated postcards; printed cards bearing personal greetings, messages or announcements, whether or not illustrated, with or without envelopes or trimmings 49.10 Calendars of any kind, printed, including calendar blocks: - Calendars of the 'perpetual' type or with replaceable blocks mounted on bases other than paper or paperboard 55.01 to 55.07 ex Chapters 50 to 55 Manufacture from paper-making materials of Chapter 47 Manufacture from materials not classified within heading 49.09 or 49.11 Manufacture in which: - all the materials used are classified within a heading other than that of the product, and - the value of all the materials used does not exceed 50% of the ex-works price of the product - Other Manufacture from materials not classified within Synthetic or artificial staple fibres Yarn, monofilament and thread: heading 49.09 or 49.11 Manufacture from chemical materials or textile pulp - Silk yarn Manufacture from raw silk or silk waste, not carded or combed or otherwise prepared for spinning - Other Manufacture from: - natural fibres not carded or combed or otherwise prepared for spinning, - chemical materials or textile pulp, or 42

ex Chapters 50 to 55 ex Chapter 56 Woven fabrics: - paper-making materials - Incorporating rubber thread Manufacture from single yarn - Other Manufacture from: - coir yarn, - natural fibres - man-made staple fibres not carded or combed or otherwise prepared for spinning, - chemical materials or textile pulp, or - paper OR - Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerizing, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatizing, impregnating, mending and burling) where the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product Wadding, felt and non-wovens; special yarns, twine, cordage, ropes and cables and articles thereof except for headings 56.02, 56.04, 56.05 and 56.06, for which the rules are set out below Manufacture from: - coir yarn, - natural fibres, - chemical materials or textile pulp, or - paper-making materials 56.02 Felt, whether or not impregnated, coated, covered or laminated: - Needleloom felt Manufacture from: - natural fibres, or - chemical materials or textile pulp However: - polypropylene filament of heading 54.02, - polypropylene fibres of heading 55.03 or 55.06, or - polypropylene filament tow of heading 55.01, of which the denomination in all cases of a single filament or fibre is less than 9 decitex may be used provided that their value does not exceed 40% of the ex-works price of the product 56.04 Rubber thread and cord, textile covered; textile yearn, and strip and the like of heading 54.04 or 54.05. impregnated, coated, covered or sheathed with rubber or plastic: - Rubber thread and cord, textile covered Manufacture from rubber thread or cord, not textile covered - Other Manufacture from: - natural fibres not carded or combed or otherwise prepared for spinning - chemical materials or textile pulp, or - paper-making materials 56.05 Metallized yarn, whether or not gimped, being textile yarn, or strip or the like of heading 54.04 or 54.05, combined with metal in the form of thread, strip or powder or covered with metal 56.06 Gimped yarn, and strip and the like of Manufacture from: Manufacture from: - natural fibres, - man-made staple fibres not carded or combed or otherwise prepared for spinning, - chemical materials or textile pulp, or - paper-making materials 43

heading 54.04 or 54.05, gimped (other than those of heading 56.05 and gimped horsehair yarn); chenille yarn (including flock chenille yarn); loop wale-yarn - natural fibres, - man-made staple fibres not carded or combed or otherwise prepared for spinning, - chemical materials or textile pulp, or - paper-making materials Chapter 57 Carpets and other textile floor coverings: - Of needle loom felt Manufacture from : - natural fibres, or - chemical materials or textile pulp However: - polypropylene filament of heading 54.02, - polypropylene fibres of heading 55.03 or 55.06, or - polypropylene filament tow of heading 55.01, of which the denomination in all cases of a single filament or fibre is less than 9 decitex may be used provided that their value does not exceed 40% of the ex-works price of the product - Of other felt Manufacture from: - natural fibres not carded or combed or otherwise prepared for spinning, or - chemical materials or textile pulp - Other Manufacture from: - coir yarn, - synthetic or artificial filament yarn, - natural fibres, or - man-made staple fibres not carded or combed or otherwise prepared for spinning ex Chapter 58 Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings, embroidery, except for headings 58.05 and 58.10; the rule for heading 58.10 is set out below: - Combined with rubber thread Manufacture from single yarn - Other Manufacture from: - natural fibres, - man-made staple fibres not carded or combed or otherwise prepared for spinning, or - chemical materials or textile pulp OR - Printing accompanied by at least two finishing operations (such as scouring, bleaching, mercerizing, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatizing, impregnating, mending and burling) where the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product Manufacture from yarn 58.10 Embroidery in the piece, in strips or in motifs 59.01 Textile fabrics coated with gum or amylaceous substances, of a kind used for the outer covers of books or the like; tracing cloth; prepared painting canvas; buckram and similar stiffened textile fabrics of a kind used for hat foundations Manufacture from yarn 59.02 Tyre cord fabric of high tenacity yarn of nylon or other polyamides, polyesters or viscose rayon: - Containing not more than 90% by Manufacture from yarn 44

weight of textile materials - Other Manufacture from chemical materials or textile pulp 59.03 Textile fabrics impregnated, coated, Manufacture from yarn covered or laminated with plastics, other than those of heading 59.02 59.04 Linoleum, whether or not cut to shape; Manufacture from yarn floor coverings consisting of a coating or covering applied on a textile backing, whether or not cut to shape 59.05 Textile wall coverings: - Impregnated, coated, covered or Manufacture from yarn laminated with rubber, plastics or other materials - Other Manufacture from: - coir yarn, - natural fibres, - man-made staple fibres not carded or combed or otherwise prepared for spinning, or - chemical materials or textile pulp OR - Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerizing, heat setting, raising, calendering, shrink resistance processing, permanent finishing, decatizing, impregnating, mending and burling) where the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product 59.06 Rubberized textile fabrics, other than those of heading 59.02: - Knitted or crocheted fabrics Manufacture from: - natural fibres, - man-made staple fibres not carded or combed or otherwise prepared for spinning, or - Other fabrics made of synthetic filament yarn, containing more than 90% by weight of textile materials - chemical materials or textile pulp Manufacture from chemical materials - Other Manufacture from yarn Manufacture from yarn 59.07 Textile fabrics otherwise impregnated, coated or covered; painted canvas being theatrical scenery, studio backcloths or the like 59.08 Textile wicks woven, plaited or knitted for lamps, stoves, lighters, candles and the like; incandescent gas mantles and tubular-knitted gas mantle fabric therefore, whether or not impregnated 59.09 to 59.11 Textile articles of a kind suitable for industrial use: - Polishing discs or rings other than of felt of heading 59.11 Manufacture from single yarn Manufacture from yarn or waste fabrics or rags of heading 63.10 - Other Manufacture from: - coir yarn, - natural fibres, - man-made staple fibres not carded or combed or otherwise prepared for spinning, or - chemical materials or textile pulp Chapter 60 Knitted or crocheted fabrics Manufacture from: 45

Chapter 61 Articles of apparel and clothing accessories, knitted or crocheted ex Chapter 62 62.13 and 62.14 ex 62.17 63.01 to 63.04 Articles of apparel and clothing accessories, not knitted or crocheted, except for headings ex 62.13, 62.14 and ex 62.17 for which the rules are set out below: Handkerchiefs, shawls, scarves, mufflers, mantillas, veils and the like Stiffeners for collars and cuffs, cut to shape - natural fibres, - man-made staple fibres not carded or combed or otherwise prepared for spinning, or - chemical materials or textile pulp Manufacture from: - natural fibres, - man-made staple fibres not carded or combed or otherwise prepared for spinning, or - chemical materials or textile pulp Manufacture from yarn Manufacture from unbleached single yarn Manufacture in which - all the materials used are classified within a heading other than that of the product, and - the value of all the materials used does not exceed 40% of the ex-works price of the product Blankets, travelling rugs, bed linen etc.; curtains, etc.; other furnishing articles: - Of felt, of non-wovens Manufacture from: - natural fibres, or - chemical materials or textile pulp - Other: Manufacture from unbleached single yarn 63.05 Sacks and bags, of a kind used for the packing of goods Manufacture from: - natural fibres, - man-made staple fibres not carded or combed or otherwise processed for spinning, or - chemical materials or textile pulp 63.06 Tarpaulins, awnings and sunblinds; tents, sails for boats, sailboards or landcraft; camping goods: - Of non-wovens Manufacture from: -natural fibres, or -chemical materials or textile pulp - Other Manufacture from unbleached single yarn 63.07 Other made-up articles, including dress patterns 63.08 Sets consisting of woven fabric and yarn, whether or not with accessories, for making up into rugs, tapestries, embroidered table cloths or serviettes or similar textile articles, put up in packings for retail sale 64.01 to Footwear 64.05 65.03 Felt hats and other felt headgear, made from the hat bodies, hoods or plateaux of heading 65.01, whether or not lined or trimmed 65.05 Hats and other headgear, knitted or crocheted, or made up from lace, felt or other textile fabric, in the piece (but not in strips), whether or not lined or trimmed; hair-nets of any material, whether or not Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product Each item in the set must satisfy the rule which would apply to it if it were not included in the set. However, non-originating articles may be incorporated provided their total value does not exceed 15% of the ex-works price of the set Manufacture from materials of any heading except for non-metal footwear components of heading 64.06 Manufacture from yarn or textile fibres Manufacture from yarn or textile fibres 46

lined or trimmed 66.01 Umbrellas and sun umbrellas (including walking-stick umbrellas, garden umbrellas and similar umbrellas) Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product ex 68.03 Articles of slate or of agglomerated slate Manufacture from worked slate ex 68.04 Articles manufactured from artificial and 68.05 abrasive materials based on silicone ex 68.12 ex 68.14 carbide Articles of asbestos or of mixtures with a basis of asbestos or with a basis of asbestos and magnesium carbonate Articles of mica; including agglomerated or reconstituted mica on a support of paper, paperboard or other materials 70.06 Glass of heading 70.03, 70.04 or 70.05, bent, edge-worked, engraved, drilled, enamelled or otherwise worked, but not framed or fitted with other materials Manufacture from materials of any heading except materials of headings 68.04 or 68.05 and silicone carbide of heading 28.49 Manufacture from fabricated asbestos fibres or from mixtures with a basis of asbestos or with a basis of asbestos and magnesium carbonate Manufacture from worked mica (including agglomerated or reconstituted mica) Manufacture from materials of heading 70.01 70.13 Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or similar purposes (other than that of heading 70.10 or 70.18) 70.07 Safety glass, consisting of toughened Manufacture from materials of heading 70.01 (tempered) or laminated glass 70.08 Multiple-walled insulating units of glass Manufacture from materials of heading 70.01 70.09 Glass mirrors, whether or not framed, Manufacture from materials of heading 70.01 including rear-view mirrors 70.10 Carboys, bottles, flasks, jars, pots, phials, ampoules and other containers, of glass, of a kind used for the conveyance or packing of goods; preserving jars of glass; stoppers, lids and other closures, of glass Manufacture in which all the materials used are classified within a heading other than that of the product OR Cutting of glassware, provided the value of the uncut glassware does not exceed 50% of the exworks price of the product Manufacture in which all the materials used are classified within a heading other than that of the product OR Cutting of glassware, provided the value of the uncut glassware does not exceed 50% of the exworks price of the product ex 70.19 Articles (other than yarn) of glass fibres Manufacture from: - uncoloured slivers, rovings, yarn or chopped strands, OR - glass wool ex 71.01 ex 71.02, ex 71.03 and ex 71.04 ex 71.06, ex 71.08 and ex 71.10 ex 71.07, ex 71.09 and ex 71.11 Natural or cultured pearls, temporarily strung for convenience of transport Worked precious or semi-precious stones (natural, synthetic or reconstructed) Precious metals, semi-manufactured or in powder form Metals clad with precious metals, semimanufactured Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product Manufacture from unworked precious or semiprecious stones Manufacture from unwrought precious metals Manufacture from metals clad with precious metals, unwrought 71.16 Articles of natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed) Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 71.17 Imitation jewellery Manufacture in which all the materials used are 47

72.07 Semi-finished products of iron or nonalloy steel 72.08 to Flat-rolled products, bars and rods, 72.16 angles, shapes and sections of iron or non-alloy steel classified within a heading other than that of the product OR Manufacture from base metal parts, not plated or covered with precious metals, provided the value of all the materials used does not exceed 50% of the ex-works price of the product Manufacture from materials of heading 72.01, 72.02, 72.03, 72.04 or 72.05 Manufacture from ingots or other primary forms of heading 72.06 72.17 Wire of iron or non-alloy steel Manufacture from semi-finished materials of heading 72.07 ex 72.18, 72.19 to 72.22 Semi-finished products, flat-rolled products, bars and rods, angles, shapes and sections of stainless steel Manufacture from ingots or other primary forms of heading 72.18 72.23 Wire of stainless steel Manufacture from semi-finished materials of heading 72.18 ex 72.24, 72.25 to 72.27 Semi-finished products, flat-rolled products, bars and rods, in irregularly wound coils, of other alloy steel Manufacture from ingots or other primary forms of heading 72.24 72.28 Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or non-alloy steel Manufacture from semi-finished materials of headings 72.06, 72.18 or 72.24 72.29 Wire of other alloy steel Manufacture from materials of heading 72.24 ex 73.01 Sheet piling Manufacture from materials of heading 72.06 73.02 Railway or tramway track construction material of iron or steel, the following: rails, check-rails and rack rails, switch blades, crossing frogs, point rods and other crossing pieces, sleepers (crossties), fishplates, chairs, chair wedges, sole plates (base plates), rail clips, bedplates, ties and other material specialized for jointing or fixing rails Manufacture from materials of heading 72.06 73.04, 73.05 and 73.06 Tubes, pipes and hollow profiles, of iron (other than cast iron) or steel 73.08 Structures (excluding prefabricated buildings of heading 94.06) and parts of structures (for example, bridges and bridge-sections, lock-gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns), of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel Manufacture from materials of heading 72.06, 72.07, 72.18 or 72.24 Manufacture in which all the materials used is classified within a heading other than that of the product. However, welded angles, shapes and sections of heading 73.01 may not be used ex Chapter 74 Copper and articles thereof, except for headings 74.01 to 74.05; the rule for heading ex 74.03 is set out below Manufacture in which: - all the materials used are classified within a heading other than that of the product, and - the value of all the materials used does not exceed 50% of the ex-works price of the product ex 74.03 Copper alloys, unwrought Manufacture from refined copper, unwrought, or ex Chapter 75 Nickel and articles thereof, except for headings 75.01 to 75.03 waste and scrap Manufacture in which: - all the materials used are classified within a 48

ex Chapter 76 ex 76.16 ex Chapter 78 Aluminium and articles thereof, except for headings 76.01, 76.02 and ex 76.16; the rule for heading ex 76.16 is set out below: Articles of aluminium; except wire gauze, netting, mesh and similar articles (including endless strips) of aluminium wire, and expanded metal of aluminium Lead and articles thereof, except for headings 78.01 and 78.02; the rule for heading 78.01 is set out below heading other than that of the product, and - the value of all the materials used does not exceed 50% of the ex-works price of the product Manufacture in which - all the materials used are classified within a heading other than that of the product, and - the value of all the materials used does not exceed 50% of the ex-works price of the product Manufacture in which: - all the materials used are classified within a heading other than that of the product. However, gauze, netting, mesh and similar articles (including endless strips) of aluminium wire, and expanded metal of aluminium may be used, and - the value of all the materials used does not exceed 50% of the ex-works price of the product Manufacture in which: - all the materials used are classified within a heading other than that of the product, and - the value of all the materials used does not exceed 50% of the ex-works price of the product 78.01 Unwrought lead: - Refined lead Manufacture from "bullion" or "work" lead - Other Manufacture in which all the materials used are classified within a heading other than that of the product. However, waste and scrap of heading 78.02 may not be used ex Chapter 79 Zinc and articles thereof, except for headings 79.01 and 79.02; the rule for heading 79.01 is set out below Manufacture in which: - all the materials used are classified within a heading other than that of the product, and - the value of all the materials used does not exceed 50% of the ex-works price of the product 79.01 Unwrought zinc Manufacture in which all the materials used is classified within a heading other than that of the product. However, waste and scrap of heading 79.02 may not be used ex Chapter 80 Tin and articles thereof, except for headings 80.01, 80.02 and 80.07; the rule for heading 80.01 is set out below Manufacture in which: - all the materials used are classified within a heading other than that of the product, and - the value of all the materials used does not exceed 50% of the ex-works price of the product 80.01 Unwrought tin Manufacture in which all the materials used is classified within a heading other than that of the product. However, waste and scrap of heading 80.02 may not be used ex Chapter 81 Other base metals; articles thereof 82.06 Tools of two or more of the headings 82.02 to 82.05, put up in sets for retail sale 82.07 Interchangeable tools for hand tools, whether or not power-operated, or for machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning Manufacture in which the value of all the materials classified within the same heading as the products used does not exceed 50% of the ex-works price of the product Manufacture in which all the materials used is classified within a heading other than headings 82.02 to 82.05. However, tools of headings 82.02 to 82.05 may be incorporated into the set provided their value does not exceed 15% of the ex-works price of the set Manufacture in which: - all the materials used are classified within a heading other than that of the product, and - the value of all the materials used does not exceed 40% of the ex-works price of the product 49

or screw driving), including dies for drawing or extruding metal, and rockdrilling or earth-boring tools 82.08 Knives and cutting blades, for machines or for mechanical appliances ex 82.11 Knives with cutting blades, serrated or not (including pruning knives), other than knives of heading 82.08 82.14 Other articles of cutlery (for example, hair clippers, butcher's or kitchen cleavers, choppers and mincing knives, paper knives); manicure or pedicure sets and instruments (including nail files) 82.15 Spoons, forks, ladles, skimmers, cakeservers, fish-knives, butter-knives, sugar tongs and similar kitchen or tableware ex 83.06 ex Chapter 84 84.03 and ex 84.04 Statuettes and other ornaments, of base metal Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof; except for headings 84.03, ex 84.04, 84.18, 84.52 and 84.80 for which the rules are set out below: Central heating boilers, other than those of heading 84.02, and auxiliary plant for use with central heating boilers 84.18 Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 84.15 Manufacture in which: - all the materials used are classified in a heading other than that of the product, and - the value of all the materials used does not exceed 40% of the ex-works price of the product Manufacture in which all the materials used are classified within a heading other than that of the product. However, knife blades and handles of base metal may be used Manufacture in which all the materials used are classified within a heading other than that of the product. However, handles of base metal may be used Manufacture in which all the materials used are classified within a heading other than that of the product. However, handles of base metal may be used Manufacture in which all the materials used are classified within a heading other than that of the product. However, the other materials of heading 83.06 may be used provided their value does not exceed 30% of the ex-works price of the product Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product Manufacture in which all the materials used are classified within a heading other than heading 84.03 or 84.04 Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating materials used 84.52 Sewing machines, other than booksewing machines of heading 84.40; furniture, bases and covers specially designed for sewing machines; sewing machine needles: - Sewing machines Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all of the non-originating materials used in assembling the head (without motor) does not exceed the value of the originating materials used, and - the thread tension, crochet and zigzag mechanisms used are already originating - Other Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product 84.80 Moulding boxes for metal foundry; mould Manufacture in which the value of all the materials 50

ex Chapter 85 bases; moulding patterns; moulds for metal (other than ingot moulds), metal carbides, glass, mineral materials, rubber or plastics Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers and parts and accessories of such articles; except for headings ex 85.17, ex 85.18, 85.19 to 85.21, 85.25 to 85.29 for which the rules are set out below: used does not exceed 50% of the ex-works price of the product Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product ex 85.17 Videophones Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating materials used ex 85.18 Microphones and stands therefore; loudspeakers, whether or not mounted in their enclosures ; audio-frequency electric amplifiers; electric amplifier systems 85.19 Sound recording or reproducing apparatus 85.21 Video recording or reproducing apparatus, whether or not incorporating a video tuner 85.25 Transmission apparatus for radiobroadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; digital cameras and video camera recorders 85.26 Radar apparatus, radio navigational aid apparatus and radio remote control apparatus 85.27 Reception apparatus for radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating materials used Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating materials used Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating materials used Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating materials used Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating materials used Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating 51

85.28 Monitors and projectors, not incorporating television reception apparatus ; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus 85.29 Parts suitable for use solely or principally with the apparatus of headings 85.25 to 85.28: - Suitable for use solely or principally with video recording or reproducing apparatus 86.01 to 86.06 materials used Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating materials used Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product - Other Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating materials used Railway or tramway locomotives, rollingstock and parts thereof 86.08 Railway or tramway track fixtures and fittings; mechanical (including electromechanical) signalling, safety or traffic control equipment for railways, tramways, roads, inland waterways, parking facilities, port installations or airfields; parts of the foregoing 86.09 Containers (including containers for the transport of fluids) specially designed and equipped for carriage by one or ex Chapter 87 more modes of transport Vehicles other than railway or tramway rolling-stock and parts and accessories thereof; except for headings 87.11 and ex 87.12 for which the rules are set out below: 87.11 Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating materials used ex 87.12 Bicycles without ball bearings Manufacture from materials not classified within heading 87.14 88.04 Parachutes (including dirigible parachutes and paragliders) and rotochutes; parts thereof and accessories thereto: - Rotochutes Manufacture from materials of any heading including other materials of heading 88.04 Chapter 89 Ships, boats and floating structures ex Chapter Optical, photographic, cinematographic, Manufacture in which all the materials used is classified within a heading other than that of the product. However, hulls of heading 89.06 may not be used Manufacture in which the value of all the materials 52

90 measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof; except for headings ex 90.05, ex 90.06, 90.07, 90.11, ex 90.18 and 90.28 for which the rules are set out below: ex 90.05 Binoculars, monoculars, other optical telescopes and mountings therefore, except astronomic retracting telescopes and mountings therefore ex 90.06 Photographic (other than cinematographic) cameras; photographic flashlight apparatus and flashbulbs other than electrically ignited flashbulbs 90.07 Cinematographic cameras and projectors, whether or not incorporating sound recording or reproducing apparatus 90.11 Compound optical microscopes, including those for photomicrography, cinephotomicrography or microprojection used does not exceed 40% of the ex-works price of the product Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating materials used Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - where the value of all the non-originating materials used does not exceed the value of the originating materials used Manufacture in which: - in which the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating materials used Manufacture: - in which the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating materials used ex 90.18 Dentists' chairs incorporating dental appliances or dentists' spittoons Manufacture from materials of any heading, including other materials of heading 90.18 90.28 Gas, liquid or electricity supply or production meters, including calibrating meters therefore: - Parts and accessories Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product - Other Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating materials used ex Chapter 91 Clocks and watches and parts thereof; except for headings 91.05, 91.09 to 91.13 for which the rules are set out below: Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product 91.05 Other clocks Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating materials used 53

91.09 Clock movements, complete and assembled 91.10 Complete watch or clock movements, unassembled or partly assembled (movement sets); incomplete watch or clock movements, assembled; rough watch or clock movements Manufacture in which: - the value of all the materials used does not exceed 40% of the ex-works price of the product, and - the value of all the non-originating materials used does not exceed the value of the originating materials used Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product 91.11 Watch cases and parts thereof Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product 91.12 Clock cases and cases of a similar type for other goods of this Chapter, and parts thereof 91.13 Watch straps, watch bands and watch bracelets, and parts thereof: - Of base metal, whether or not plated, or clad with precious metal Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product - Other Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product Chapter 92 Musical instruments; parts and accessories of such articles Chapter 93 Arms and ammunitions; parts and accessories thereof 94.05 Lamps and lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like, having a permanently fixed light source, and parts thereof not elsewhere specified or included Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 94.06 Prefabricated buildings Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product 95.03 Tricycles, scooters, pedal cars and similar wheeled toys ; dolls` carriages ; dolls ; other toys ; reduced-size ( scale ) models and similar recreational models, working or not ; puzzles of all kinds Manufacture in which: - all the materials used are classified within a heading other than that of the product, and - the value of all the materials used does not exceed 50% of the ex-works price of the product ex 95.06 Golf clubs and parts thereof Manufacture from roughly shaped blocks ex 96.01 and ex 96.02 ex 96.03 Articles of animal, vegetable or mineral carving materials Brooms and brushes (except for besoms and the like), hand-operated mechanical floor sweepers, not motorised, paint pads and rollers, squeegees and mops 96.05 Travel sets for personal toilet, sewing or shoe or clothes cleaning Manufacture from "worked" carving materials of the same heading Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product Each item in the set must satisfy the rule which would apply to it if it were not included in the set. However, non-originating articles may be incorporated, provided their total value does not 54

96.06 Buttons, press-fasteners, snap-fasteners and press-studs, button moulds and other parts of these articles; button blanks exceed 15% of the ex-works price of the set Manufacture in which: - all the materials used are classified within a heading other than that of the product, and - the value of all the materials used does not exceed 50% of the ex-works price of the product 96.08 Ball point pens; felt tipped and other porous-tipped pens and markers; fountain pens, stylograph pens and other pens; duplicating stylos; propelling or sliding pencils; pen-holders, pencilholders and similar holders; parts (including caps and clips) of the foregoing articles, other than those of heading 96.09 96.12 Typewriter or similar ribbons, inked or otherwise prepared for giving impressions, whether or not on spools or in cartridges; ink-pads, whether or not inked, with or without boxes Manufacture in which all the materials used is classified in a heading other than that of the product. However, nibs or nib points may be used. Manufacture in which - all the materials used are classified within a heading other than that of the product, and - the value of all the materials used does not exceed 50% of the ex-works price of the product ex 96.14 Smoking pipes or pipe bowls Manufacture from roughly shaped blocks 55

Certificate of origin, form A Printing instructions The certificate of origin, Form A, must conform to the specimen shown in this appendix. The form shall be printed in English or French. The notes on the reverse of the form may be printed in a language other than English or French. Each form shall measure 210 x 297mm; a tolerance of up to plus 8 mm or minus 5 mm in length may be allowed. The paper used must be white, sized for writing, not containing mechanical pulp and weighing not less than 25 g/m2. It shall have a printed green guilloche pattern background making any falsification by mechanical or chemical means apparent to the eye. If the forms have several copies, only the top copy, which is the original, shall be printed with a printed green guilloche-pattern background. The competent authorities may print the forms themselves or may have them printed by approved printers. In the latter case, each form must include a reference to such approval. Each form must bear the name and address of the printer or a mark by which the printer can be identified. It shall also bear a serial number, either printed or not, by which it can be identified. Certificates of origin, a specimen of which is shown in this appendix, shall be accepted as from the date this Regulation enter into force. Certificates made out in accordance with the previous specimen shall be accepted for a transitional period of six months. 56

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